Capital gains tax investigations 'raise £110m' in extra revenue
11 Mar 2014
HM Revenue & Customs (HMRC) has raised £110m following investigations into underpayments of capital gains tax (CGT) for the year 2012/13.
CGT is charged on the gain or profit made when an asset is sold, given away or otherwise disposed of.
An individual’s main residence is exempt from CGT when it is sold, provided it has been their only or main residence during the whole period of ownership. Various rules allow periods of temporary absence to be disregarded.
Individuals who own more than one property can elect which house is to be their main residence for CGT purposes within two years of acquiring the additional residence.
However, HMRC has been specifically targeting buy-to-let landlords and owners of multiple properties, recovering additional tax and penalties worth a third more than the amount raised in the previous tax year.
We can advise on all aspects of personal taxation, including capital gains tax planning. Please contact us for further advice.