Sunday, 28 September 2008

Buy-To-Let Landlords Beware

HM Revenue & Customs have cottoned on to the substantial buy-to-let market out there, and are now targeting landlords who have failed to declare, and pay tax on, this income.

As agents, we are starting to receive letters stating; "I have information that suggests your client has received rental income from property that has not been included on their Tax Return. I need to verify if my information is correct, and, if they have received rents, to work out any tax that may be due."

Anyone receiving these letters should act immediately, as failure to do so could could incur additional financial penalties, and, ultimately, criminal prosecution.

An Inland Revenue spokesman said; "We are not planning a crackdown, or to otherwise target landlords. These letters are about helping customers with their tax affairs and answering common questions put to us by our landlord customers. It has got nothing to do with revenue raising. (Yeah, right, and and speed cameras are all about helping drivers with their driving skills).

The other impact of this strategy is that HMRC are seeking to gather information on buy-to-let properties, so that they can ensure these properties don't slip through the Capital Gains Tax net, when they are ultimately sold.

1 comment:


Here comes the taxman once again.