Selling a house

[shawn_phade@yahoo.co]

I have not yet been in the UK for a full tax year. Does IRD make everyone fill in a tax return each year?

If I was to buy a house and sell it, how does IRD know about this? If you sell a house do you have to declare it to them then account for CGT liability using formula's like you see on many of the responses in this forum taking into account PPR, Taper, Lettings and Personal Allowance?

[Nigel Lord]

Shawn

Only about a third of taxpayers are issued with annual returns, this depends on circumstances, however, the onus is on the taxpayer to declare new sources of income or capital gains. If no return is issued, a failure to make a declaration carries the same exposure to interest and penalties.

Unless a property is your main residence and qualifies for 100% PPR relief, it must be declared. The Inland revenue have access to land registry record, so property transactions are easily visible.

Nigel Lord
Lord Associates
Taxation & Business Consultants
Caxton House
Old Station Road
Loughton
Essex, IG10 4PE
020 8418 9101 & 07769 931852
mail@lordassociates.co.uk