Over the next few months they also have the issue of the Property Sales campaign to contend with. Our FAQs should help with the basics.
What is the Property Sales campaign?
The Property Sales campaign is effectively a tax amnesty that has been set up by HMRC. It gives anyone who has sold or gifted additional residential properties in the UK and abroad the chance to voluntarily disclose any income or gains and pay the tax that is owed.
Who benefits?
The Property Sales campaign is good news for those who have not paid money due on the sale of a property. It is likely to be of particular benefit to those who have inherited a property as they may not be aware of the tax implications. Tax is due on the profits made from the sale of any property.
It also covers sales of gardens for building plots, so property developers may also be able to take advantage.
How to take part
Anyone wanting to take part needs to notify by HMRC by 9th August this year. This ensures they can qualify for the reduced penalty.
Notifications made after this date will be subject to a higher penalty rate, up to 100% of the tax. Property owners can submit their notification online, by post or by calling HMRC.
What to tell HMRC
To make a notification property owners must tell HMRC their basic details, plus information on the property, such as when it was acquired, any costs accrued and profits or rental income made.
Other income or gains not disclosed previously must also be stated, such as property income or land rental, capital gains on the sale of other properties and investment income that has not been taxed before it was received.
What happens if you don't?
HMRC expects those affected to make a full and complete disclosure. If they do not, or their disclosure is found to be false, action can be taken.
As with all tax payments, interest and penalties can be charged if money is not paid by the deadline.
