HMRC have sent out 14000 letters to property sellers that have sold a property and should have paid capital gains tax within 30 days.
They warn that if a return is late it will accrue interest on the late payment as well as a filing penalty.
These letters from the HMRC are asking people who have sold a residential property during the 2018/19 tax year to check if they owe Capital Gains Tax.
There hasn’t been much publicity about this new policy and the short amount of time you have to declare is catching people out.
This letter is designed to remind people of the new policy and give them the opportunity to amend their 2018/19 tax return or make a disclosure for this tax year.
Needless to say, if you receive one of these letters make you sure you check and if necessary, get professional advice.
The main target of the letters is those who sold a property which may not have been their main residence.
It’s unusual for HMRC to carry out indepth checks of the information they hold so people can still receive these letters even if they qualify for CGT relief.