2nd Property Capital Gains Tax Deadline
Published / Last Updated on 08/08/2013
2nd Property Capital Gains Tax Deadline.
Today is HMRC's deadline for you reporting and settling taxes on 2nd properties that you have owned and sold in the last 20 years.
Many people are not aware that if you own a second property and then sell it, you may be liable to capital gains tax on the profits.
Types of Property:
- All second properties
- Holiday Homes
- Buy to Let property
- Commercial property
- Land
- Overseas property
- Trust property
- Inherited property
- Gifted property
- Main residence is not included under Private Residence Relief (unless you have not been resident in that property for a period of time). For example, you moved to a different area, you worked overseas and you rented your property.
Can you hide? No!
Make no mistake, the Land Registry is linked to HMRC and when you bought property or sold property, Stamp Duty will likely have been paid. HMRC knows when people own property or not. You will not get away with it.
Are HMRC sympathetic?
They claim they are and will deal with your case fairly. Recently, we dealt with a client who came forward to us, having not realised he may have to pay capital gains tax on an inherited property, he settled his tax bill and still was fined heavily. HMRC's attitude was atrocious. There was no give and take even when HMRC delayed.
HMRC is a law unto itself. When clients make mistakes they are fined. When HMRC makes mistakes and offer poor service and constant delays they cannot be fined and pay zero compensation. It is even a battle to get late penalty interest fines waived when HMRC are the cause for the delay.
That said, the law is the law. HMRC has a difficult job to do as many people are not law abiding and they need to be caught. If tax is due it is due and you should pay your taxes. If you are worried about capital gains tax liabilities on property or have sold a property in the last 20 years, contact us, we can help and deal with HMRC on your behalf.