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Taxpayers who incorporated their property business in 2017-18 but reported no capital gains tax liability on their self-assessment tax return on the basis that incorporation relief under TCGA 1992, s 162 applies in full, are the latest target of an HMRC one-to-many letter campaign, reports the CIOT.
The letter asks the taxpayer to check that they have calculated the incorporation relief correctly and suggests that they may need to seek professional advice if they are unsure.
If the taxpayer needs to disclose an error, they are asked to submit a disclosure to HMRC using a dedicated email address provided. If the taxpayer believes that everything is in order, they are asked to let HMRC know by emailing another dedicated email address.
Failure to respond within 30 days from the date of the letter may result in HMRC issuing discovery assessments.
