7 Days to Pay 2nd Home Tax

7 Days to Pay 2nd Home Tax.

HMRC’s deadline for paying undisclosed capital gains tax (CGT) on second homes is fast approaching.

HMRC has offered an amnesty where people who have sold second properties where Capital Gains Tax was due and have not paid it up to now.

The deadline for CGT payment is the 6^th September 2013 and if you have not paid it by then, as well as late payment interest you will also be fined.

Comment

HMRC has been fair and reasonable to encourage those who may not be aware that tax is due or those that may be aware but have ignore the fact, thinking they can get away without paying tax due, to pay up or face the consequences.

Make no mistake, this is not an issue that you can ignore.

When you buy a property you are registered with the land registry as the owner, whether it is freehold or leasehold registration.

The Land Registry’s systems are linked to HMRCs.

How do they know?  Most people also pay stamp duty when a property is purchased.  Stamp Duty Land Tax (SDLT) is exactly that, it is a tax paid to HMRC.

If you have sold a second property, make sure your paperwork is in order.  If you sold within certain timeframes for example, it was your main residence that you sold within 3 years of living in it before moving to a new permanent main residence, you may have some relief or exemption from capital gains tax on a second property.

Contact us today for urgent capital gains tax advice on a 2^nd property.