If you have sold a residential property in the UK or abroad, that’s not your main home, you may interested to know that HMRC have now officially launched the ‘Property Sales Campaign’. The campaign is targeted at those individuals who have not declared sales of residential properties on which capital gains tax should have been payable.
It is due to run until 6 September 2013 and eligible individuals are encouraged to ‘make a notification’ by 9 August 2013 and then provide HMRC with a complete disclosure of their tax irregularities by 6 September 2013. Any tax, penalties and interest will also be due by this date.
This campaign is for individuals only and cannot be used if you buy and sell property as a business (these sales are subject to income tax rather than capital gains tax) or those who need to disclose a gain made by a trust, company or partnership.
The benefit to individuals of making disclosures within this given time frame, is a lower rate of penalties of 10% or 20% being applied to the tax payable. Late payment interest is also charged. When utilising this campaign the individual can also take the opportunity to make a declaration of any other sources of income or gains that have not been taxed.
Individuals will be required to sign a certificate of full disclosure to confirm that all of their tax affairs have been brought up to date and HMRC expects a full and complete disclosure. If the disclosure is later found to be false then HMRC can take action.
Once the 6 September 2013 deadline has passed HMRC has stated that it will be using the information it holds to target those who should have made a disclosure under this campaign and failed to do so.