TaxPersonal TaxTaxman scoops £110m in CGT underpayments

Taxman scoops £110m in CGT underpayments

HMRC recoups a third more in CGT underpayments and penalties in the last year, compared to 2011/12

Taxman scoops £110m in CGT underpayments

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.

Related Articles

Autumn Statement: Chancellor launches attack on buy-to-let landlords with tax hike and CGT change

Personal Tax Autumn Statement: Chancellor launches attack on buy-to-let landlords with tax hike and CGT change

2y Richard Crump, Writer
Brits could take heed from Aussie buy-to-let tax concerns

Corporate Tax Brits could take heed from Aussie buy-to-let tax concerns

2y Joanne Christie
Analysis: NI and Scots tax devolution steps closer

Corporate Tax Analysis: NI and Scots tax devolution steps closer

3y Andrew Goodall
HMRC in tax crackdown on second homes

Personal Tax HMRC in tax crackdown on second homes

5y Calum Fuller, Reporter
Tax-free funds would boost UK high-tech industry

Personal Tax Tax-free funds would boost UK high-tech industry

5y Kevin Reed, Writer
Over 55s could face five-pronged property tax hit

Accounting Firms Over 55s could face five-pronged property tax hit

3y Chris Warmoll, Writer
Clegg: Tax foreign investment in London property

Personal Tax Clegg: Tax foreign investment in London property

4y Calum Fuller, Reporter
Deadline approaches for second home tax

Personal Tax Deadline approaches for second home tax

4y Calum Fuller, Reporter