Capital Gains Tax is a large revenue generator for HMRC and they are now taking step to clamp down on its avoidance by second home owners and buy-to-let landlords, of residential as well as commercial property
.The new campaign to crack down on this avoidance is similar to other disclosure campaigns set previously by the HMRC around offshore investments and VAT defaulters, and they are giving the public until August 9th
to reveal any unpaid tax on property and giving them until September 6th
to pay. Previous schemes have raised £547m in voluntary tax payments and HMRC hopes that this new campaign will be as successful.The HMRC will also be looking at offshore properties such as holiday homes which are held abroad. They have access to data held by the local councils on domestic landlords as well as its own database of all property transactions that are subject to stamp duty. Anyone who comes forward before the revenue start to look for people themselves are likely to have much more lenient treatment and penalties than those who are discovered further down the line.The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.Setfords Solicitors are a national full service law firm, with property solicitors in Nottingham and across the country.