General Chat

About 25 years ago my parents gifted their property to me. Both my parents have since died and 4 years ago I was in the position to sell the property. Having made a profit over the 20odd years I knew I was liable to pay substantial amount of Capital Gains Tax. However I had never filled in a Tax Return Form for as long as I can remember so I wondered how the Tax office would know I was liable to pay this tax! I pondered for long enough about whether to tell the Tax Office or not then a friend told me that the Land Registry informed the Tax Office when a property is sold. I telephoned the Land Registry (2 different offices in fact) and they told me that they have nothing to do with the Tax Office and do not inform them. I simply didn’t know what to do but my wife (who used to work in the Tax Office) said that if I was ever to be found out I would be liable for penalties.

I eventually decided to do the honourable thing and tell them. The person I dealt with at the Tax Office said, “But your name isn’t on the system”. The look on her face said it all . . . . more or less why are you volunteering this information? I definitely think I could have saved an awful lot of money

So my question is simply this, if your name isn’t on the system who (if anyone) tells the Tax Office, when a second property is sold, that Capital Gains Tax is due?

I have a feeling nobody does!

Hawthorn,

Are you a UK tax payer with a UK National Insurance (NI) number? If so you will have a tax reference number. Did you give the HMRC your NI number and tax reference in addition to your name?
The onus is on the individual to inform the HMRC if they think that any tax is payable. Ignorance of the law is no defence. Do you have the HMRC response to your inquiry (name not on record) in writing, if not I suggest you do as it may be useful in the future!

Sorry if it sounds harsh ......but you did ask !!

Marilyn

Yes I am a UK tax payer with a NI number, I'm not sure about a Tax reference number.

I did tell the Tax Office that I thought I was due to pay CGT . . . . as I said I was honest and I did pay what was due. Everything was above board !

I appreciate the onus is on the individual to inform the Tax Office and I paid the CGT 4 years ago but since then I have often wondered that if I hadn't informed the Tax Office how would they have known I had sold the property?

Hawthorn,

In that case if you have a Tax reference number you MUST be on the System .

Go back and see them again.......only to clarify this.


Good luck.
Marilyn

I'm not so sure about a tax reference number now, the only reference number I know about is my NI number.

Everyone must be on the system somewhere as we all pay tax ! But I can't understand why the person I dealt with said I wasn't on the system.

It's all water under the bridge now as it was paid 4 years ago, but I still wonder how the Tax Office would know when a second property is sold when you don't fill out a Tax Return form. Everyone doesn't fill out these forms on a regular basis, only those in business.

Hawthorn,

Did you give them your N I number ?

The HMRC has access to all Government Data Basis, this includes Land registry........


Marilyn....