The nature of the rented sector in the UK means that many landlords may have bought and sold a range of properties throughout their time in operation in the market, but this could be leaving many with future tax problems they are completely unaware of.
As well as expenses like landlord insurance and income tax from rental payments, many people are unaware that there are costs such as capital gains tax (CGT) if they have sold a property at profit.
HMRC have been cracking down on those who have sold a home that is not their primary residence at profit and not paid CGT, but while there will be some who avoid it, there are many others who may be at risk of being fined largely because they were unaware of their obligations.
For this reason, it could be important to contact a financial adviser as soon as possible if you have sold a second home at any time to make sure that you are not hit with a large fine further down the line. However, with time running out on the Property Sales Campaign, there is no time to spare.
Those who have not paid CGT have until August 9th to declare what they owe to the HMRC, and then until September 6th to pay the outstanding monies. Failure to do so will lead to fines - the HMRC said that any penalties are always lower if people come forward rather than needing to be approached.
Marian Wilson, head of HMRC Campaigns, said: "Over the last few months we have published articles and written to a lot of people to make them aware of the campaign. As a result, hundreds of people have now come forward. It is not too late for people to contact us.
"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."