The UK government are clamping down on homeowners who have sold a second home, without declaring the relevant capital gains. HMRC have given a deadline of the 6th September 2013 for owners to voluntarily declare any income, and to pay relevant taxes. They have confirmed that if you present the capital gains within the deadline, they will offer ‘fair’ penalty payment options.
It has been stated that after this date, the HMRC will use all it’s knowledge to target those who have failed to disclose earnings, but should have done so.
As we previously explained in our article, Declaring the taxes on your Spanish holiday rental; as a second home owner, it’s important that you are declare the earnings both in Spain and in the UK. With the Property Sales Campaign it’s now vital to declare the earnings on the sale of your second home, as well as the rental revenue.
Who can use this campaign?
The campaign is relevant to homeowners who have sold a second home, either in the UK or abroad, which could include a holiday home or holiday rental, or indeed a long-term rental property.
Aside from declaring the capital gains on the sale of the property, you must also declare any income from rentals.
Please check the HM Revenue & Customs Property Sales Campaign information for more details.