New Property Sales Disclosure Campaign
22 April 2013
Posted by: Author: Chartered Accountants Ireland
Source: Chartered Accountants Ireland
HMRC have recently launched what they refer to as ‘The Property Sales campaign’. This is a new disclosure opportunity which will enable anyone who has sold a residential property and not paid the right amount of tax on any profit made to take advantage of better terms by making a disclosure to HMRC. The deadline to notify intention to participate is 9 August 2013 with all disclosures to be submitted by 6 September 2013.
HMRC are clear that after 6 September, those who should have made a disclosure under this campaign and failed to do so will be targeted using intelligence information.
The campaign is available for a holiday home/property that was rented out in the UK or abroad. It can also be used where someone has sold their main home (whilst this would normally qualify for Private Residence Relief, in some circumstances the relief is restricted meaning capital gains tax would be due if an individual is liable to UK taxes).
The campaign does not apply to anyone who buys or sells property as a business. Nor is it available to anyone needing to disclose a gain made by a trust, company or partnership.
Anyone taking part in the campaign must also tell HMRC about any other income or gains that haven’t previously been disclosed from any other source.
Payment of the underpaid tax must be made to HMRC at the same time as the disclosure is submitted. However it may be possible to pay this in installments, subject to HMRC agreement. It should be stressed that an agreed payment arrangement must be in place before the disclosure and payment deadline and therefore it is recommended that HMRC are contacted at an early stage to discuss.