They can use HMRC's current Property Sales Campaign which is aimed at those selling second homes in the UK or abroad where Capital Gains Tax (CGT) should be paid. It includes properties that were rented out and holiday homes.
Taxpayers have until 09 August to tell HMRC about any unpaid tax on such property sales, and until 06 September to pay the tax that they owe. By using the campaign to come forward voluntarily, people will receive the best possible terms, and any penalty will be lower than if HMRC approaches them first.
‘Over the last few months we have published articles and written to a lot of people to make them aware of the campaign. As a result, hundreds of people have now come forward. It is not too late for people to contact us,’ said Marian Wilson, head of HMRC Campaigns.
‘If you have sold a second home you might not know it could attract Capital Gains Tax. If anyone has done this in the past and is unsure, they should look at HMRC's website and use our simple decision tree to find out if they might owe CGT. Telling HMRC about your tax liabilities is straightforward, and help, advice and support are available,’ she explained.
After 06 September, HMRC will take a much closer look at the tax affairs of people who have sold properties other than their main home, but who appear to have paid no CGT.
‘We will use information that we hold about property sales in the UK and abroad to identify people who have not paid what they owe. Penalties or even criminal prosecution could follow,’ warned Wilson.
People can take advantage of the campaign by telling HMRC about unpaid tax by 09 August by disclosing the details of what they owe and paying the tax owed by 06 September.