Taxman scoops £110m in CGT underpayments

by Kevin Reed

More from this author

10 Mar 2014

  • Comments
house-for-sale

INVESTIGATIONS into CGT underpayments saw the taxman scoop £110m in 2012/13.

The figure, comprising underpayments and associated penalties, is a third higher than in the previous year, according to HMRC data analysed by UHY Hacker Young.

Buy-to-let landlords and owners of multiple homes have been targeted by the taxman. Advisers from UHY Hacker Young warn that those claiming a CGT exemption on the sale of a property as principle private residence are under the taxman's microscope.

Roy Maugham, tax partner at UHY Hacker Young, said: "As buy-to-let investment becomes ever more popular and property prices continue to rise, there is inevitably more tax at stake. So there is greater incentive for people to try to shelter their gains from the taxman amid increasing pressure on HMRC to maximise its tax take."

The increase In CGT to 28% from 18% in 2010 is believed to have pushed the use of more tax planning schemes.

"There's been a lot of giving with one hand and taking away with the other in the last few years as far as taxing entrepreneurs on business sales are concerned," said Maugham. "However with such a big headline increase in the top rate of CGT, there is bound to be a sharper focus on reducing the potential bill through greater use of tax planning schemes."

Total CGT receipts were £3.9bn during the period.

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

Appointments to University Committees

University of Glasgow 120x60University of Glasgow - Glasgow - unremunerated positions

 

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.