Buy-to-let investors and second-home owners who have sold their properties without telling the taxman have one week left to pay up or face penalties and even criminal prosecution.
HM Revenue & Customs (HMRC) has been running a property sales campaign aimed at those who have sold second homes in the UK or abroad without paying capital gains tax (CGT).
With the scheme drawing to a close 6 September, they have only one week to pay the tax they owe.
If owners come forward voluntarily before then, they will receive the best possible terms, and any penalty will be lower than if HMRC approaches them first.
Marian Wilson, head of HMRC campaigns, said: “Hundreds of people have come forward to take advantage of this campaign. It is not too late to contact us.
“If you have sold a second home you might not know it could attract CGT. Telling HMRC about your tax liabilities is straightforward and help, advice and support are available.”
After 6 September, HMRC will take a much closer look at the tax affairs of people who have sold properties other than their main home, but who appear to have paid no CGT.
The department will use information on property sales in the UK and abroad to identify people who haven't paid what they owe. Penalties, including criminal prosecution, could follow.
For more details on the campaign, taxpayers can visit HMRC’s website: hmrc.gov.uk/campaigns/psc.htm. Help is also available from HMRC by calling 0845 601 8819.
Previous HMRC campaigns have targeted offshore investments, medical professionals, plumbers, VAT defaulters, coaches and tutors, electricians, online traders and higher rate taxpayers with outstanding tax returns, raising £547 million from voluntary disclosures, and nearly £140 million follow-up activity, including 20,000 completed investigations.
Seven people have been convicted and forced to £550,000 in total, plus custodial sentences up to two years.
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