Act now to avoid tax penalties on sale of second home

Apr 21, 2013

Leading accountancy firm Whitley Stimpson is calling for people that have sold a second home in the UK or overseas, to take advantage of HMRC’s Property Sales campaign to ensure they are not landed with an unexpected tax bill and penalty.

HMRC plan to target people who have sold a second home, a holiday home or a buy-to-let property without paying tax, even if it was up to 20 years ago, but are offering a window of opportunity for voluntary disclosure.

To qualify for the Property Sales campaign, HMRC need to be notified by 9 August 2013 if profit has been made from the sale of a property, which isn’t a main home. This should be followed by a disclosure in addition to payment of any gains owed by 6 September 2013.

Owen Kyffin, Partner and tax specialist, Whitley Stimpson, comments: “Following the 6 September deadline, HMRC will target those who should have made a disclosure under the Property Sales campaign and failed to so.  Whitley Stimpson is advising people to step forward now.  This will enable us to eliminate the chance of them receiving an unwanted surprise in addition to ensuring the best possible terms are negotiated.”

To notify HMRC, complete and submit a notification form personally or through an accountant. Further details of the amounts involved are not immediately required.

“Once notification has been made, it is down to the individual or advisor to follow HMRC’s guidelines to calculate what is owed and to make a disclosure” explains Kyffin.  “There are a lot of factors to consider before submitting a voluntary disclosure and we thoroughly recommend that help and advice is sought before doing so.”

The latest year that can be included in a voluntary disclosure under the Property Sales campaign is 2011-2012.  Any gains or income to report for 2012-2013 should be submitted via a Self Assessment Tax Return.

For further information or to arrange a free initial consultation with Owen Kyffin, please call Whitley Stimpson on 01295 270200.