Property sellers encouraged to check they have paid the correct tax

HMRC is sending a new batch of nudge letters to sellers of residential properties to make sure that they have paid the right amount of tax. This is on the ground that some taxpayers may owe another 8% on top of what they have already paid.

Dawn Register head of tax dispute resolution at BDO said: ‘This is yet another example of HMRC using land registry data to check up on taxpayers reporting and paying tax on property deals. HMRC continues to encourage landlords with tax irregularities to make a voluntary disclosure using the let property campaign and seek specialist advice where necessary about the disclosure process.’

An HMRC spokesperson said: ‘We are writing to customers who we believe have sold a residential property which had a capital gains tax charge but who may have declared this in the wrong part of their tax return...