HMRC Homes in on Second Property Sales


HM Revenue & Customs has set its sights on undeclared profits made from the sale of second homes, warns DSH Chartered Accountants & Business Advisors.

The property sales clampdown is aimed at anyone who has sold second or additional residential properties in the UK or abroad where capital gains tax should be paid on any profits made, but has not informed HMRC.

The campaign will focus on sales of homes that were inherited, rented to a third party or used as holiday accommodation. People have until Friday, August 9 to inform HMRC of any unpaid tax on property sales and until Friday, September 6 to pay the amount owed.

Steve Carpenter, Tax Manager at Maidstone-based DSH, said: “HMRC takes tax avoidance very seriously and is increasingly seeking to impose maximum penalties. After September 6, HMRC will closely scrutinise the tax affairs of those who have sold properties other than their main home, but who appear to have paid no capital gains tax.

“By using this campaign to come forward voluntarily, people will receive the best possible terms, as any penalty they pay by coming forward now will be lower than if HMRC comes to them first.”

DSH advises anyone who has profited from the sale of second or additional homes to contact them to check that their tax payments are in order, before HMRC find otherwise. Those who have made a loss could also benefit from seeking advice as they may be able to deduct it from a gain made in the same year or future years.

The property sales campaign cannot be used by those who buy and sell property as a business as they are subject to income tax rather than capital gains tax, or by a trust, company or partnership.

To find out more about DSH Chartered Accountants & Business Advisors, visit www.dsh.co.uk or call 01622 690666.

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