Latest HMRC property campaign and disclosure opportunity
HMRC launched its latest in a series of campaigns on 5 March 2013.
This campaign is aimed at individuals who have sold a residential property, in the UK or abroad, that does not qualify in full for the principal private residence (PPR) exemption.
The campaign gives an opportunity to disclose voluntarily the capital gains on previously unreported property sales in 2011/12 and earlier years.
As with most HMRC campaigns, there are two deadlines:
- if a taxpayer wishes to use the opportunity they must notify HMRC by 9 August 2013; and
- the taxpayer must make the disclosure and settle the tax, interest and penalties by 6 September 2013.
HMRC can be notified by email, post or telephone. There is a notification form to download from the HMRC website. A taxpayer can have their agent notify HMRC on their behalf.
Full details, including the notification form, can be found on the HMRC website at www.hmrc.gov.uk/campaigns/psc.htm.
The link is helpful as not only does it explain the campaign but it provides useful information on the PPR relief and bases of calculation.
It is worthwhile remembering that not only non disclosed property sales are caught but also properties that have been given away (perhaps as part of Inheritance Tax planning for example), the gain on which is calculated by reference to market value of the property at the date of gift.