One in Five Receive Tax Penalties
Around 2 ½ years ago we wrote a blog post about the new online reporting regime for the sale of UK residential property.
Despite the fact that since then there have been various tweaks to the requirements and, not least, additional guidance from HMRC in how to use their online system (considered by many to be overly complicated and cumbersome), it seems there continues to be a significant lack of awareness. How significant?
Well, accordingly to statistics recently released by HMRC for the year ended 5 April 2022, approximately 20% of all online CGT property returns were filed late, giving rise to penalties being charged. That equates to something around 26,500 taxpayers and with penalties being up to £1,600, potentially that’s £42m of penalties being charged!
Most of this still comes down to a lack of awareness by those involved in disposing of UK property – estate agents, those assisting in conveyancing and taxpayers themselves. However, the underlying blame for this should really lay with HMRC who were very slow to publicise the new regime and have not always been helpful in trying to facilitate taxpayer compliance. Very few of those 26,500 taxpayers have successfully appealed against the penalties imposed.
To make sure you’re not 1 in 5, contact the Elman Wall Tax Team if you have any property disposal queries. You can reach us by email at TaxTeam@elmanwall.co.uk or by phone on 020 7600 5667.