A new disclosure facility 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...., the Property Sales campaign.
Under the campaign those individuals who have sold a residential property and made a profit, which is subject to 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..., are able to bring their tax affairs up to date.
The campaign is aimed at individuals who have sold, or disposed of, second or additional residential properties either in the UK or abroad. These could include a holiday home or a property that you rented out.
You may also be able to use this campaign where you have sold your main home. This 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.
To take advantage of the best possible terms, taxpayers must voluntarily disclose any income or gains and payment must be made by 6 September 2013.
After 6 September HMRC suggest they will use the information they hold to target those who should have made a disclosure under this campaign and failed to do so.
We have experience in making disclosures for clients and if you have a capital gains tax liability that requires disclosure we can assist you in calculating the appropriate gain, followed by the appropriate disclosure under this facility.
We always recommend that any disclosure is made at the earliest opportunity and soon after any errors or omissions are identified.
If you would like to discuss the Property Sales campaign please do not hesitate to contact us.