TAXMAN TARGETS BUY-TO-LET OWNERS

Are you being targeted?

Are you at risk of being targeted?

Are you worried of being targeted?

HMRC has launched a campaign targeted at people who have income from property and have not declared it on their tax returns for the years from 2001/02 onwards. It has identified 80,000 landlords who may have claimed too much tax relief or have failed to declare the amount of rent they receive from the property, or a capital gain made on the sale of the property. It has the power to impose penalties, which can reach the same value as the unpaid tax bill and charge interest on the sum. It will draw information from banks and tenants and from letting adverts.

The Revenue has become much more aggressive about collecting the tax in the past few years. The Revenue can claw back unpaid tax from as far back as six years, which means that some of those who have bought properties to rent or are letting their own home could face tax bills so massive that they may have to sell their property.

HMRC will issue letters to taxpayers with copies sent to advisers requesting details of property income from 2001/02 to date. Each letter to which you should reply within 30 days will be sent with a declaration form and guidance. Buy to Let landlords may get as much as 90% discount on penalties on offshore income if they admit to unpaid tax before a June 22 deadline.

The income includes:

Income from renting a room & Buy to let income
Furnished holiday letting income

If you or an acquaintance of yours receives such a letter, you can call us to discuss the matter further. Alternatively you could visit our main website by clicking here.