We are aware that HMRC has recently issued some 14,000 letters to property owners. This specifically relates to information HMRC has concerning property sale transactions in 2018 and 2019. HMRC will have checked the addresses against tax returns and have a suspicion that the owner may not have declared a taxable capital gain on this sale. 

Nudge letters have no legal jurisdiction but they are a serious warning that HMRC will open a formal investigation if there is no response. We would advise anyone in receipt of one of these letters to take professional advice before replying to HMRC. We can assist taxpayers and their advisers with the best way forward. This may include making a disclosure to HMRC or submitting a report that there was no capital gain. 

We would also advise that any property owners that have sold or rented out property which has not previously been declared to HMRC to take advice before HMRC approach you with an similar nudge letter, tax investigation or even worse, a criminal prosecution for tax evasion, before it is too late. Making a voluntary disclosure to HMRC will help reduce any tax-based penalty. 

Please also join us for our Webinar on 11 November 2020 at 12:00 when our Tax Investigation experts Dave Jennings and Phillip Webb discuss the current disclosure facilities that are available with HMRC.”