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HM Revenue & Customs has announced that it will be using its extensive data gathering powers to trace people who have sold properties - at home OR abroad - other than their main homes. Such 'second' homes are unlikely to be eligible for the "Private or Main Residence Relief" from Capital Gains Tax, which is generally available to a taxpayer's main residence. (Although where there is a choice of available residences, the taxpayer does generally have the option to nominate which should enjoy the benefit of the Relief, and for how long).

HMRC is urging affected taxpayers to make use of the ongoing Property Sales Campaign in order to benefit from the most favourable terms available, and to

1. Notify HMRC (that there has been a chargeable property sale) by 9 August 2013 and
2. Pay any outstanding Capital Gains Tax by 6 September

TaxationWeb always recommends that a taxpayer, who thinks he or she might be affected, contact their professional adviser to ensure that the relevant HMRC campaign is indeed the most suitable option - it may well be the case that, (for instance), the Liechtenstein Disclosure Facility could offer more favourable terms or better protection.

We have also previously highlighted HMRC's extensive (and growing) data gathering powers - see for instance Warning - HMRC is Looking at Mortgage Applications.

For further information, see Property Sales Campaign.