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Tiptree  01621 819019
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  • HMRC SECOND HOMES CAMPAIGN

    14/3/2013

    HMRC has announced a new campaign to trace the sellers of second homes, either in the UK or abroad who have not informed HMRC of the sale.

    Whenever a property is sold (whether in the UK or abroad) which is not the seller's main residence, then thought needs to be given as to whether a Capital Gain has been made on the sale. Even though selling abroad you may have paid a form of Capital Gains Tax in the country in which the property was situated, this does not relieve you from the possibility of having to also pay Capital Gains Tax in the UK.

    This campaign began on 5 March 2013 and individuals have until 9 August 2013 to tell HMRC that they intend to disclose a sale. All disclosures must be made to HMRC by 6 September 2013.

    The current campaign does not offer taxpayers the benefit of reduced penalties for coming clean, nor is there any guarantee of immunity from prosecution. However, generally speaking voluntary disclosure will attract at a lighter penalty than HMRC discovering for itself that there is tax owing. In addition to any penalty, there will be interest charged on any tax due. It is possible to "test the waters" on an anonymous basis, and if you think that you may be liable to pay Capital Gains Tax on profits made upon a sale, we would be happy to advise further, and work with your accountant in initially making an anonymised disclosure to HMRC.

    If you were unfortunate enough to own property in Spain or certain parts of France, you may now be nursing a capital loss on your investment. If you have suffered a capital loss upon selling your property, you do not need to make disclosure to HMRC. However, capital losses should not be overlooked. These losses may be offset against Capital Gains made in connection with other disposals. You should speak to your accountant as to using any capital losses that you hold, to offset Capital Gains on other investments.

    If you do not have an accountant then, as a member of the UK 200 Group of Solicitors and Accountants, we would be very pleased to put you in touch with an accountancy firm member of the UK 200 Group practising in Essex. There are five member firms in Essex and between them they offer good geographical coverage of the whole county. For further information please contact:

    christopher.hayward@brights.eu.com.

     

    Solicitors in Essex with
    offices in Maldon, Tiptree
    and Witham

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