Avoiding Capital Gains Tax

Chrish1985

I think I already know the answer to this, but, hypothetically, is it illegal to list a house as your main residence even if you've never lived in it? I was just reading around th3 house flipping scandal and wondered whether this was an unclosed loop hole.

For example, if a person recently built a house next to the house they live in and they want to sell it, could they sell the buyer the house they are living in rather than the house they built but just live in each other's houses? That way no capital gains tax is due. Providing they changed the electoral register, utility bills etc how would anyone find out? What would be the penalty?

Thanks

MacMickster

I don't think that this hypothetical person has even a hypothetical future as a tax avoidance specialist - but a future residing at Her Majesty's Pleasure is probably slightly less hypothetical.

Thrugelmir

Tax penalties are severe. You'd need to pay the tax, be fined for not filing a correct self assessment form, be fined up to 100% of the tax due, and finally pay interest from when the tax was originally due. Can be a fast route to bankruptcy.

Keep_pedalling

Just where are you going to find this hypothetical [STRIKE]idiot[/STRIKE] buyer, who is going to take part in a tax evasion scheme, that only you would benefit from?

csgohan4

pay your bloody taxes like everyone else