A new property taskforce has been launched by Her Majesty's Revenue and Customs (HM Revenue and Customs or HMRC) is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support and the administration of other regulatory regimes including the national minimum wage.... More to tackle “taxpayers” who are not declaring property income in North West England and North Wales. It has been estimated that more than one million buy-to-let and other private landlords are not declaring their rental income, costing taxpayers £550 million a year. Therefore, HMRC has greatly increased its scrutiny of landlords in a bid to claw back some of this tax.
It is understood HMRC will use intelligence from the Valuation Office Agency and other sources, such as the Tenancy Deposit Scheme, to target those who have sold a property and not paid any Capital Gains Tax ("CGT") applies in certain cases when an asset is sold for more than it was originally purchased. The taxable gain (profit) may be triggered following the transfer of an asset, although commonly this would follow a sale. A number of tax reliefs are available to exempt or reduce the tax that may apply. Basic tax planning may... More. Taxpayers who have sold, or disposed of, second or additional residential properties either in the UK or abroad are therefore in the spotlight. These could include a holiday home or a property that you rented out and could even include a sale of your main home. A sale of your main home would normally qualify for Private Residence Relief but in some circumstances the relief is restricted. Where the entitlement to this relief is restricted capital gains tax may be due if you are liable to UK taxes.
We have experience in making disclosures for clients and if you have an income tax or capital gains tax liability that requires disclosure we can assist you in making the appropriate disclosure under. We always recommend that any disclosure is made unprompted, at the earliest opportunity and soon after any errors or omissions are identified.
If you would like assistance in making a disclosure please do not hesitate to contact us.