HM Revenue and Customs (HMRC) is targeting buy to let landlords and second home owners in the new campaign.
The Property Sales Campaign is aimed at those selling homes in the UK or abroad, where Capital Gains Tax (CGT) should be paid on any profits made. This includes, for example, properties people have sold that were given to them, and the sale of holiday homes.
CGT is applicable when a property, which is not a main home, is sold at a profit that tops the annual CGT allowance, which is currently £10,600.
Owners have until 09 August to tell HMRC about any unpaid tax on property sales, and until 06 September to pay the tax owed.
After 06 September, HMRC will take a much closer look at the tax affairs of those who have sold properties other than their main home, but who appear to have paid no CGT.
Marian Wilson, head of HMRC campaigns said that by coming forward voluntarily, people will receive the best possible terms, as any penalty they pay by coming forward voluntarily will be lower than if HMRC comes to them first.
‘Some people will not understand that selling a second home, a holiday home or a property disposed of as a gift could attract Capital Gains Tax. They need to look at our website or contact us. Telling HMRC about your tax liabilities is simple and straightforward, and help, advice and support are available,’ she explained.
‘It is better to come to us before we come to you. After the opportunity closes on 06 September, HMRC will use information it holds 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,’ she added.
Owners are being urged to tell HMRC about unpaid tax by 09 August, to disclose the details of what they owe and to pay what they owe by 06 September.
The crackdown comes at a time when the number of second homes in England is rising. Data from the Department of Communities and Local Goverment show that in numbers increased in 2012.
The number of properties qualifying for a second-home discount from the annual council tax charge rose from around 246,000 in 2011 to 255,000 last year.
