HMRC cracks down on second home sales

HMRC clearly have property owners in their sights as they go for more low hanging fruit; this time they are looking at second home sales.

They are writing to 1,500 people who have sold a second home or buy-to-let property in the 2015-16 tax year but not declared a profit on which capital gains tax would potentially be liable.

The wording of these letters is still being finalised but they will certailny ask recipients to explain why they have not paid the tax that HMRC’s computer models indicate they owe.

Chas Roy-Chowdhury of the ACCA said the HMRC initiative should serve as a “wake-up call” to existing and former landlords or owners of second homes, some of whom may not realise they owe tax.