HMRC is targeting homeowners who have sold buy-to-let properties or second homes without declaring profits and paying capital gains tax, by offering lower penalties for voluntary disclosure by August 9th, but threatening higher penalties if caught later. Those selling non-primary homes in the UK or abroad could face capital gains tax if profits were made. This campaign aims to recover unpaid taxes on home sales outside of primary residences, including rental properties, holiday homes, or homes sold as gifts.

1. HMRC tax crackdown on second home
sales
Revenue offers limited lower penalties for people who sold
second properties but didn't pay enough capital gains tax – but
promises harsh subsequent penalties
Rupert Jones
The Guardian, Tuesday 5 March 2013 13.12 GMT
Jumptocomments (65)
HMRC is targeting people selling homes where capital gains tax should be paid on the profits, but hasn't been. Photograph:
Christopher Furlong/Getty
Homeowners who have sold a buy-to-let property or second home
without declaring the profits to the taxman are being targeted as part of a
crackdown by HM Revenue and Customs.
HMRC said people in this category were being offered "preferential
terms" with lower penalties for a limited period. If they do not come
forward voluntarily and the taxman tracks them down they will pay much
more.
The "property sales campaign" is targeting those who have sold a
property that is not their main home, and who have not told HMRC about
any profits they have made as a result. It is aimed at those selling homes
in the UK or abroad where capital gains tax (CGT) should be paid on the
profits.
This includes, for example, the sale of a property that someone has been
renting out, or a holiday home.
There is a 9 August deadline for telling HMRC about any unpaid tax on
the sale of a property, and any tax owed must be paid by 6 September.

2. After the latter date, HMRC said it would take "a much closer look" at the
tax affairs of people who have sold properties other than their main home
but who appear to have paid no CGT.
"By using this campaign to come forward voluntarily, people will receive
the best possible terms, as any penalty they pay will be lower than if
HMRC comes to them first," a spokesman said.
Typically, someone who pays up now will pay the tax due, plus interest,
and a penalty of up to 20% of the tax. If they are caught later they will be
hit with a penalty of up to 100% – and in the most serious cases, criminal
prosecution could follow.
People do not need to worry about the sale of their main home, as this is
usually exempt from CGT. This exemption may not apply, however, if the
property concerned has not always been their only or main home, or if
they have used it for business purposes, including letting it out, or have
sold part of the garden.
Marian Wilson, head of HMRC campaigns, said: "Some people will not
understand that selling a second home, a holiday home or a property
disposed of as a gift could attract CGT. They need to look at our
websiteor contact us."
Help is also available from HMRC by calling 0845 601 8819.
HMRC's current and previous campaigns have targeted, among others,
offshore investments, medical professionals, plumbers, coaches and
tutors, electricians and eBay traders, and have so far raised £547m from
so-called voluntary disclosures and nearly £140m from follow-up activity,
including 20,000 completed investigations.
There are 13 criminal investigations underway, with five convictions
already secured.
http://www.guardian.co.uk/money/2013/mar/05/hmrc-tax-crackdown-second-home-sales