Due to the fragile economy in the UK, the Government are cracking down on companies or businesses that may be avoiding paying tax.
Government Warns over Not Paying Tax
The news has already uncovered numerous stories regarding celebrities, landlords, and corporations using loopholes to pay less tax, and all of them have been condemned for their actions.
Additionally, HM Revenue and Customs (HMRC), has said that they are seeking out anyone who has sold their property recently and not paid their Capital Gains Tax (CGT). They will soon be planning more serious repercussions.
Jonathan Turner, of tax advisory company KPMG’s Northern Private Client team, has made a statement warning those who haven’t paid CGT: “If you have sold a property which wasn’t your main home, it’s likely you will need to pay Capital Gains Tax on the profits. There is a limited window of opportunity to come clean. If you think you are unaffected by this you must come forward and tell HMRC by 9th August 2013. In return, you will secure the best terms possible to pay the money back by the deadline of 6th September 2013.
“Ignoring this is not an option. After this amnesty period passes, HMRC will use the information they hold to target you, and you may be subject to harsher penalties or even prosecution.” 1
He adds: “You can ask your accountant to make this notification on your behalf, or complete a notification form online. Do not leave it until the last minute: HMRC require detailed information about the sale, as well as any other gains you haven’t previously disclosed. This is an opportunity to get your affairs in order and ensure you are meeting your responsibilities.”
If you have sold a property recently, either in the UK or overseas, then you are required to pay CGT on any profit you made over £10,600. Depending on which country you have sold your property in, you may also have to pay extra tax there. Ensure you check this with your overseas property insurance provider.
You can check the rules surrounding CGT on the HMRC website, or call their helpline if you are unsure. An accountant will be able to inform you quickly and with ease on how much you owe and how to pay this.