Home sellers have until Friday 6th September 2013 to make any necessary disclosures under HMRC’s Property Sales Campaign. The campaign was launched on 5 March 2013 and designed to encourage people to come forward and report any undisclosed tax liabilities to the authorities.
HMRC has targeted individuals who sold a residential property in the UK abroad that did not qualify in full for the principal private residence relief (PPR) exemption. Generally, most home-owners will not be subject to capital gains tax when they sell their main home as they are entitled to the PPR exemption. However, as part of its crackdown on tax avoidance, HMRC identified many were failing to disclose taxable property sales.
The deadline for notifying HMRC of an intention to disclose was 9 August 2013. All relevant disclosures and payments should be made by 6th September although even if you won’t make these deadlines, it is still best to approach HMRC first with any undisclosed amounts, rather than waiting for them to contact you.
After 6 September, HMRC will take a more detailed look at those who have sold properties other than their principal residence yet appear to have paid no CGT. The penalty for failure to notify and disclose is likely to be higher if HMRC comes to you, rather than if you approach HMRC voluntarily. Phone the Property Sales Campaign Helpline for guidance.
If you have undisclosed income or gains from a different source, and want to bring your tax affairs up to date, this can be done via the Voluntary Disclosure Helpline.
Previous guidance on the Property Sales Campaign can be found on HMRCs website and includes how to make a disclosure and calculate tax arrears.
We can help you to understand your tax obligations and advise on the HMRC enquiry process. Contact Julia Whelan on [email protected] for advice in this area.
Curo Chartered Accountants