HMRC tracks down individuals selling second property undeclared
HMRC is writing to some 14,000 individuals who have sold residential properties that were not reported for tax purposes. This concerns properties sold between 6 April 2018 and 5 April 2019, so the 2018/19 tax year. HMRC has access to Land Registry records and uses data-mining software to link properties to individuals to identify tax that may have been lost.
Anyone in receipt of a letter from HMRC or suspecting they might be affected should seek advice from their tax adviser straightaway. There may be a simple explanation for why the sale of the property was not reported. It is key that the facts are reviewed properly to see whether anything needs to be disclosed and how to respond to HMRC.
If there is anything to pay, making a disclosure now will ensure that the individual minimises their exposure to penalties and limits the interest charged on any tax paid late. HMRC will investigate individuals who don’t respond to the letters and if it is established that there is a tax liability, the individual may face higher tax-geared penalties.
Getting expert help
Moore Kinston Smith’s tax dispute resolution experts have a deep understanding of tax legislation and specialise resolving historical tax issues. We can advise on the tax position and deal with all aspects of the disclosure. Our role is to minimise the individual’s exposure and the overall liabilities. We understand how important it is to have certainty and can explain how best to resolve the matter quickly and efficiently so that there are no surprises.
If you have any concerns or questions about HMRC’s announcement or the letters, please contact John Hood.