Buy-to-let landlords and second home owners beware – the taxman is coming for you
HMRC declares war on homeowners who avoid tax
March 6, 2013
HM Revenue and Customs (HMRC) has kick-started a campaign to stop second-home owners and buy-to-let landlords from avoiding Capital Gains Tax (CGT). When you sell a property which is not your primary residence you must declare the profit and potentially pay tax on the earnings if they top the annual CGT allowance of £10,600.
The taxman has announced an amnesty for those who have not declared profits previously as long as they come forward by 9 August 2013 and pay the outstanding tax by September 6 this year. Landlords will also be targeted for not declaring rental income
Stephen Goldstraw, a partner at Manches LLP said: “Owning a second property can be appealing but it comes with a lot of tax problems, particularly if it is outside the UK. If it is rented out, there will be income tax to pay (for overseas properties both in the overseas country and in the UK). If you sell it, there will be CGT to pay (again both in the overseas country and the UK for foreign properties)”
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