Partner Article

Holiday homeowners and landlords face HMRC scrutiny

Holiday homeowners and buy to let landlords who have sold second properties and not disclosed the profits are being targeted by HM Revenue and Customs (HMRC), warns KPMG.

HMRC has launched a campaign focusing on people selling properties in the UK and abroad where capital gains tax is due.

Jonathan Turner, of KPMG’s Northern Private Client team, warns: “If you have sold a property which wasn’t your main home, it’s likely you will need to pay capital gains tax on the profits.

“There is a limited window of opportunity to come clean. If you think you are affected by this you must come forward and tell HMRC by 9 August 2013. In return you will secure the best terms possible to pay the money back by the deadline of 6 September 2013.

“Ignoring this is not an option. After this amnesty period passes HMRC will use the information they hold to target you, and you may be subject to harsher penalties or even prosecution.

“You can ask your accountant to make this notification on your behalf or complete a notification form online. Do not leave it until the last minute: HMRC require detailed information about the sale, as well as any other gains you haven’t previously disclosed. This is an opportunity to get your affairs in order and ensure you are meeting your responsibilities.”

This was posted in Bdaily's Members' News section by KPMG .