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New campaign to recoup undeclared profits on second home sales

 

Residential landlords are the subject of a new HMRC campaign to recoup undeclared profits on the sale of second homes.

 

The Property Sales campaign is designed to claw back any unpaid capital gains tax (CGT) from people selling property that is not their main residence. This includes buy-to-let investments and holiday homes in the UK and abroad.

 

Individuals have until 9 August to disclose any unpaid CGT on property sales, and any tax owed must be paid by 6 September.

 

Sellers who make a disclosure voluntarily are likely to receive a lower penalty compared to those who are approached directly by HMRC.

 

Head of HMRC Campaigns, Marian Wilson, said: ‘It is better to come to us before we come to you. After the opportunity closes, 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.’

 

However, Gary Ashford from the Chartered Institute of Taxation, said: ‘Rather than launching different targeted campaigns in rapid succession, HMRC should focus their efforts on a big national campaign open to all taxpayers whose tax affairs are not up to date.

 

‘We also wonder whether HMRC need to look at the current penalty regime to make sure they aren't acting as a barrier to the whole area of campaigns’.