i am due to sell a property soon for a small profit which will be subject to cgt, i have heard that if i put the money away and wait for the tax office to write to me that i am( a) doing nothing wrong and (b) that after a certain time scale they cant ask for the money.
does any one know if this is true.
i obviously dont want to get in trouble over this but also with a possible 40% tax bracket if i dont have to pay id rather not
many thanks
2007-08-01 10:47:14 · 3 answers · asked by if only 1 in Business & Finance ➔ Taxes ➔ United Kingdom
As One Step says the tax is due to be paid by the 31st January 2009.
I just wanted to add that, assuming you do not already complete self-assessment tax returns, the onus is on you to report the fact that you have this liability by the 5th October 2008.
HMRC will then be able to issue you with a return.
2007-08-01 18:59:18 · answer #1 · answered by tringyokel 6 · 0⤊ 0⤋
The tax is payable before 31/01 in the year following assessment. So a sale today will mean tax due in January 2009.
You must complete a tax return and declare the gain. They will not write to you.
If you don't declare it they can claim whenever they "discover" the gain.
2007-08-01 18:41:34 · answer #2 · answered by Do not trust low score answerers 7 · 1⤊ 0⤋
Your advice is wrong.
UK tax works on self assessment. You are required to complete a tax return by 31st jan in th year following the tax year end of the gain (5th April).
see www.hmrc.gov.uk
2007-08-01 17:53:10 · answer #3 · answered by madgooner 4 · 1⤊ 0⤋