This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.guardian.co.uk/money/2013/mar/05/hmrc-tax-crackdown-second-home-sales
The article has changed 7 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| HMRC tax crackdown on second home sales | HMRC tax crackdown on second home sales |
| (14 days later) | |
| Homeowners who have sold a buy-to-let property or second home without declaring the profits to the taxman are being targeted as part of a crackdown by HM Revenue and Customs. | Homeowners who have sold a buy-to-let property or second home without declaring the profits to the taxman are being targeted as part of a crackdown by HM Revenue and Customs. |
| HMRC said people in this category were being offered "preferential terms" with lower penalties for a limited period. If they do not come forward voluntarily and the taxman tracks them down they will pay much more. | HMRC said people in this category were being offered "preferential terms" with lower penalties for a limited period. If they do not come forward voluntarily and the taxman tracks them down they will pay much more. |
| The "property sales campaign" is targeting those who have sold a property that is not their main home, and who have not told HMRC about any profits they have made as a result. It is aimed at those selling homes in the UK or abroad where capital gains tax (CGT) should be paid on the profits. | The "property sales campaign" is targeting those who have sold a property that is not their main home, and who have not told HMRC about any profits they have made as a result. It is aimed at those selling homes in the UK or abroad where capital gains tax (CGT) should be paid on the profits. |
| This includes, for example, the sale of a property that someone has been renting out, or a holiday home. | This includes, for example, the sale of a property that someone has been renting out, or a holiday home. |
| There is a 9 August deadline for telling HMRC about any unpaid tax on the sale of a property, and any tax owed must be paid by 6 September. After the latter date, HMRC said it would take "a much closer look" at the tax affairs of people who have sold properties other than their main home but who appear to have paid no CGT. | There is a 9 August deadline for telling HMRC about any unpaid tax on the sale of a property, and any tax owed must be paid by 6 September. After the latter date, HMRC said it would take "a much closer look" at the tax affairs of people who have sold properties other than their main home but who appear to have paid no CGT. |
| "By using this campaign to come forward voluntarily, people will receive the best possible terms, as any penalty they pay will be lower than if HMRC comes to them first," a spokesman said. | "By using this campaign to come forward voluntarily, people will receive the best possible terms, as any penalty they pay will be lower than if HMRC comes to them first," a spokesman said. |
| Typically, someone who pays up now will pay the tax due, plus interest, and a penalty of up to 20% of the tax. If they are caught later they will be hit with a penalty of up to 100% – and in the most serious cases, criminal prosecution could follow. | Typically, someone who pays up now will pay the tax due, plus interest, and a penalty of up to 20% of the tax. If they are caught later they will be hit with a penalty of up to 100% – and in the most serious cases, criminal prosecution could follow. |
| People do not need to worry about the sale of their main home, as this is usually exempt from CGT. This exemption may not apply, however, if the property concerned has not always been their only or main home, or if they have used it for business purposes, including letting it out, or have sold part of the garden. | People do not need to worry about the sale of their main home, as this is usually exempt from CGT. This exemption may not apply, however, if the property concerned has not always been their only or main home, or if they have used it for business purposes, including letting it out, or have sold part of the garden. |
| Marian Wilson, head of HMRC campaigns, said: "Some people will not understand that selling a second home, a holiday home or a property disposed of as a gift could attract CGT. They need to look at our website or contact us." | Marian Wilson, head of HMRC campaigns, said: "Some people will not understand that selling a second home, a holiday home or a property disposed of as a gift could attract CGT. They need to look at our website or contact us." |
| Help is also available from HMRC by calling 0845 601 8819. | Help is also available from HMRC by calling 0845 601 8819. |
| HMRC's current and previous campaigns have targeted, among others, offshore investments, medical professionals, plumbers, coaches and tutors, electricians and eBay traders, and have so far raised £547m from so-called voluntary disclosures and nearly £140m from follow-up activity, including 20,000 completed investigations. | HMRC's current and previous campaigns have targeted, among others, offshore investments, medical professionals, plumbers, coaches and tutors, electricians and eBay traders, and have so far raised £547m from so-called voluntary disclosures and nearly £140m from follow-up activity, including 20,000 completed investigations. |
| There are 13 criminal investigations underway, with five convictions already secured. | There are 13 criminal investigations underway, with five convictions already secured. |
| Top mortgages | Top mortgages |
| Chelsea Building Society | Chelsea Building Society |
| HSBC | HSBC |
| Nationwide |