People who have sold properties that are not their main homes, and have not told HM Revenue and Customs (HMRC) about any profit on the sale, have one week left to pay up.
HMRC’s Property Sales Campaign is aimed at those who have sold second homes in the UK or abroad where Capital Gains Tax (CGT) should be paid. It includes properties that have been rented out and holiday homes. HMRC Campaigns have so far raised £547 million from voluntary disclosures, and nearly £140 million from follow-up activity, including 20,000 completed investigations. Campaigns have targeted offshore investments, medical professionals, plumbers, VAT defaulters, coaches and tutors, electricians, online traders and higher rate taxpayers with outstanding tax returns. Seven people have been convicted, with custodial sentences handed out of up to two years. They have between them had to pay over £550,000.
If you owe any tax you have until 6 September to pay. HMRC holds the database for all property sales/gifts attracting Stamp Duty Land Tax. The department will compare this data with people’s tax records to establish whether they have told HMRC about the sale or disposal of second and holiday homes. By using the campaign to come forward voluntarily, you will receive the best possible terms, and any penalty will be lower than if HMRC approaches you first.
Marian Wilson, head of HMRC campaigns, said: “Hundreds of people have come forward to take advantage of this campaign. It is not too late to contact us.