HM Revenue and Customs have launched a campaign targeting people who have sold a residential property in the UK or abroad that is not their main home and have not declared the profits.
HMRC seeks Capital Gains Tax revenue
The Property Sales campaign aims to encourage those who have sold a property and not paid Capital Gains Tax (CGT) to declare their profits to HMRC. UK residents have until 9 August 2013 to notify HMRC that they are taking part in the campaign; HMRC must then receive a disclosure form by 6 September 2013.
Penalties to increase if you miss the CGT September deadline
After this date, HMRC will begin to target those who failed to make a disclosure when they should have done so. It has advised that penalties will be more severe for individuals who do not make a disclosure before the September deadline.
Buy to let income & CGT tied together
Buy to let landlords are also advised that, if taking part in the campaign, they must also disclose any other income or gains from property rental and capital gains on the sale of other properties or assets.
Landlords may be able to offset the CGT cost
If someone has made a loss on the sale of a property, they may be able to offset it against another gain in the same year or future years.
What to do if you have not declared CGT on a house sale
If you think that you may be eligible to pay CGT on the sale of second or subsequent property, you can read more about the Property Sales campaign here. For more information on taxation for buy to let landlords, read our expert guide to tax.