Landlords have just days to get their tax affairs in order under a new HMRC scheme.
The Property Sales Campaign gives landlords an opportunity to “bring their tax up to date” in cases in which they have sold a property that is not their main home and have failed to declare the profits.
Landlords who wish to participate must register by 9 August, and must pay the tax due by 6 September.
The campaign is the latest in a string of HMRC amnesties, each of which has targeted a specific sector or activity that is deemed to be high risk. It also applies to non-landlords who have sold a second home.
An HMRC spokesperson said: “The Property Sales Campaign is an opportunity for you to bring your tax up to date if you have sold a residential property, in the UK or abroad, that’s not your main home. If you made a profit but have not told HMRC, you might not have paid the right amount of tax.” Landlords must disclose the profit and pay the tax by the deadline in order “to take advantage of the best possible terms.”
Investors who fail to disclose their income by the deadline could face prosecution. HMRC has already brought criminal cases against landlords in Yorkshire, and is actively building a database of those who it believes have not properly reported their profits.
Make a notification under the Property Sales Campaign on the HMRC website.