As part of their rolling programme of campaigns to provide taxpayers with opportunities to voluntarily put their tax affairs in order, HMRC are now targeting people with undeclared property sales.
This disclosure campaign is for people who have sold or disposed of, second or additional residential properties either in the UK or abroad. These could include a holiday home or a let property, and also could include properties acquired by inheritance or gift.
If you are eligible to take part in the campaign you must also tell HMRC about any other income or gains that you haven’t previously disclosed. Any information you send to HMRC as part of a campaign should be correct and complete. If it is not it is unlikely to be accepted and HMRC could start an enquiry; this may be a criminal investigation.
If your circumstances warrant it you may be able to pay what you owe by instalments.
To take part in this campaign you must make an initial “notification” to HMRC by 9 August 2013. You must then complete and send your full disclosure to the taxman by 6 September 2013.
What happens if you don’t tell HMRC?
HMRC is using legal information powers to obtain details from an extensive range of sources. After each campaign end date it uses this data, and cutting-edge computer tools, to identify those who have failed to come forward.
HMRC has the right to pursue a criminal investigation in cases of tax fraud but an important factor in making this decision is whether a person has made a complete and unprompted disclosure.
Who can’t take part?
You cannot use this campaign if:
- you buy and sell property as a business, or if the gain was made by a trust, company or partnership;
- HMRC has opened a tax investigation, tax enquiry or compliance check into your tax affairs. In such cases the Liechtenstein Disclosure Facility Tax Amnesty may offer you the best way of disclosing and obtaining immunity from prosecution.
- The undeclared income or gains is the proceeds of serious organised crime; including: VAT missing trader (MTIC) fraud; VAT bogus registration fraud; organised Tax Credit fraud; and instances where there is wider criminality (such as an ongoing police investigation).
What does this mean for me?
The Undeclared Property Sales Disclosure Campaign provides a simplified method of making disclosures. If you do wish to disclose tax fraud and miss this opportunity then favourable terms can still be obtained using the Contractual Disclosure Facility.
Lynam Tax Disclosure Experts have enormous experience of dealing with such tax disclosures and can advise further on these issues.
*For a free, confidential discussion about your tax affairs, don’t delay, call: Paul Lynam today on 0845 643 9997 or Andrew Nutbrown on 07718 778710