HMRC have announced a new campaign to encourage individuals who have sold a residential property in the UK or abroad, and which was not their main home, to report any capital gain arising if they have not already done so.
This disclosure opportunity may also be used where a property sold was the main home, but the entitlement to tax relief was restricted, for example because the property had been let or used partly for exclusive business use, or because the grounds exceeded the amount allowed.
Individuals must notify HMRC by 9 August 2013 that they intend to make a disclosure, and full details must be submitted by 6 September 2013. All amounts owing must also be paid by that date, unless HMRC have previously agreed to a payment arrangement.
HMRC have a number of ways to obtain information regarding property transactions, including access to Stamp Duty forms and Land Registry details. They also check property websites and have powers to demand information from estate agents, solicitors and banks.
After 6 September, HMRC say they will use the information they hold to target those who failed to make a disclosure under this campaign – and charge those who do not come forward voluntarily higher penalties.
