Deadline approaches for second home tax
Taxpayers who have sold second homes have a month to disclose and pay tax on undeclared profits
PEOPLE WHO HAVE SOLD their second homes have until 9 August to disclose any profit and until 6 September to pay, under an HM Revenue & Customs campaign.
Aimed at those selling second homes in the UK or abroad where Capital Gains Tax (CGT) should be paid, the campaign includes properties that were rented out and holiday homes.
By taking advantage of the window to disclose outstanding tax, taxpayers will receive the best possible settlement terms. Any penalty imposed will be lower than if outstanding liabilities are discovered first, the taxman said.
Following 6 September, HMRC will scrutinise the tax affairs of people who have sold properties other than their main home more closely, with any outstanding capital gains tax attracting penalties and potential criminal prosecution.
Head of HMRC campaigns Marian Wilson said: “If you have sold a second home you might not know it could attract capital gains tax. If anyone has done this in the past and is unsure, they should look at HMRC’s website and use our simple decision tree to find out if they might owe CGT.
“Telling HMRC about your tax liabilities is straightforward, and help, advice and support are available.”