HMRC has today launched a campaign targeting individuals selling their second homes without making any declaration of their profits to the tax authority.

Transactions which are expected to be included in the new drive include the sale of property in the UK or abroad where CGT should be paid, and is applicable to homes which may also not be a main residence - including holiday homes.

Individuals who have engaged in such transactions have until August 9 to declare unpaid CGT to HMRC and are expected to pay outstanding taxes by September 6.

After September 6, HMRC will take a much closer look at the tax affairs of those who have sold properties other than their main home, but who appear to have paid no CGT.

HMRC is also expected to act more leniently with those who volunteer the information, possibly awarding a lower penalty than they would if they approached taxpayers netted by the campaign.

HMRC campaigns head, Marian Wilson, said: 'Some people will not understand that selling a second home, a holiday home or a property disposed of as a gift could attract Capital Gains Tax. They need to look at our website or contact us. It is better to come to us before we come to you.'

Commenting the proposals, Stephen Goldstraw, partner at Manches LLP, said that owning a second property can be appealing but it comes with a lot of tax problems, particularly if it is outside the UK.

'If it is rented out, there will be income tax to pay (for overseas properties both in the overseas country and in the UK). If you sell it, there will be capital gains tax to pay (again both in the overseas country and the UK for foreign properties). You may also expose yourself to inheritance tax in the overseas country if you own a foreign property. It sounds as though many people are taking the easy way out and not declaring their ownership at all,' he said.