HMRC has
announced that it is targeting capital gains tax on the sale of second
homes.
They have asked
anyone who has not yet disclosed a capital gains tax liability to come forward
and disclose that liability before the 9th August 2013. They will then allow a further four weeks to
pay the tax owing. After that, the
taxman will search stamp duty records to find people who have sold property
either inside or outside the UK
It is thought
they will search back many years and any penalty charge will amount to 100% of
the unpaid tax or even 200% if the property is overseas.
James Hollis
explains “Capital Gains Tax is paid on any increase in value between when you
buy, and sell, your property. There are
allowances and you may be able to off-set the value of improvements to the
property against the increase in value. We can help you to work out whether you
owe any tax, and what to do to reduce the risk of paying penalties on top”
If you have sold
a second home or investment property and think this may affect you, please contact James Hollis in our Frome
office (01373 463311) or Darrell Collins at our Midsomer Norton and Keynsham
offices. (01761 417575) who will be happy to advise you.