In less than a month the first stage of HMRC’s Property Sales Campaign will be over. Anyone who has not voluntarily come forward and pleaded ‘guilty’ to not declaring a capital gain on the sale of a second (non PPR) property by 9 August will not be able to benefit from the ‘preferential terms’ being offered, explains Jennifer Adams.
HMRC’s section of the website detailing the campaign does not actually state what those terms are but it is understood that anyone coming forward will still be faced with paying the tax due, plus interest, but with a reduced penalty of 20% being levied being permitted to pay by instalments should circumstances warrant. Waiting until after the deadline to declare or indeed should the transaction be discovered by HMRC could see that penalty rise to 100% plus there is the threat of criminal prosecution. Note the word ‘threat’ and then read this article. As such, it is thought that the possibility of such prosecution is low but that does not mean to say they won’t try other methods to reach their target.
Of the two campaigns currently running the Property Sales Campaign will be the easiest for the HMRC department to work, with a cross check of SDLT returns from April 2007 onwards against self assessment records being all that is required to highlight potentially undeclared gains.
As detailed in a recent article, HMRC reveals new GAAR guidance, GAAR is not being applied to...