If you have sold a residential property at a profit you may have to pay Capital Gains Tax. The Revenue believes that a significant number of people have failed to declare these gains, perhaps because they did not realise that tax might be due. If you come clean by 9th August 2013 you may be able to come to a favourable agreement with HMRC. If not, you could find yourself facing much more severe treatment because HMRC will use the information it holds to target those who should have made a disclosure but failed to do so.
Selling your main residence at a profit does not normally involve having to pay Capital Gains Tax but landlord insurance clients will be aware that the position is different for residential property that does not qualify as your main home. Even if you did not originally purchase the property you may still have to pay tax; for example you might have inherited it and then sold it on at a profit. Until 6th September sellers can take advantage of the Revenue’s scheme called the “Property Sales” campaign. However, it is not available to everyone. You cannot use it if you:
• Buy and sell property as a business.
• Need to disclose a gain made by a trust, company or partnership.
If you take advantage of this campaign you will need to tell HMRC about any other income or gains that you should already have disclosed. For example, rents and any other income on which all the tax due has not already been paid. We strongly advise all our clients to use the services of specialist accountants and disclose everything to them so they can make sure that the correct amount of tax is paid at the appropriate time.
If you decide to take part in the Property Sales Campaign you need to contact HMRC online or over the telephone and any tax owing must be paid by 6th September. There is plenty of help available on the web so you can easily find out all about it if you think you might need to use the scheme. Visit the HMRC website and look for the Property Sales campaign.
For keeping up to date with property related news please regularly visit this blog.
for your proeprty insurance needs please visit the main website