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A question to any tax experts out there
How does the government know to chase you for Capital Gains tax if you don't declare it?
Also, how severe are the penalties if you are found to have 'forgotten' to pay your dues?
Cheers
I reckon that they're very sympathetic to there forgetful customers....you'll be fine,they're all very reasonable....
*i have no prior tax dealing knowledge*
Depends are you a billion pound making company or a large donor to the govt?
On balance I think they will probably overlook fraud and have a laugh about it- how likely [s]you [/s]the person we are discussing is to get away with it i have no idea
There's info about penalties on the HMRC site.
I'm no tax expert, but I expect they have software that trawls forums and flags up questions like this so they can narrow their search down and know who to chase.
Might be that forum owners have some obligation to report if they think a crime is being / has been committed.
If you are caught you will have to pay the tax due and probably a fine/surcharge - this can be substantial
You have a capital gains tax allowance, ie an amount you can make with no tax due - its about 10k It's a common practice to take some capital gains(by selling assets) each year to use your allowance. The you reinvest into the same assets if you wish. Another technique Isnto split the assets between a married couple (or two individuals if implicitly trusted) then you get double the allowance.
So spanking it all on shiny bike bits could be considered as buying more assets and its all fine & dandy??
WTF...
...blatant tax EVASION and no moral outrage?