HMRC announces it Property Sales Campaign (PRC)
From September 2013 HMRC will start reviewing the tax records of those who have sold residential properties. It is unconfirmed about how far back HMRC intends to look but recent implications have suggested it may be as far back as April 2007.
The campaign is likely to concentrate on second properties but HMRC will also investigate sales of homes which could have been used for reasons other than residential accommodation, for example where a claim for tax deduction for home running costs has been made.
If you potentially have an undeclared gain you should seek professional advice as soon as possible. HMRC have a deadline of 5 August for a declaration to be made under preferential treatment. After this date HMRC will investigate and any penalties for incorrect disclosure / tax payments are likely to be substantially higher.
Property sales made as part of a business, through a company or as a trustee will not be subject to these investigations.
If you are concerned that you may be affected by this, please contact us today on 02476 518 555 or 0121 711 2468.