Tax & Accounting News

HMRC target buy-to-let

05/06/2007

Thousands of private landlords in the buy-to-let sector are being targeted by Revenue and Customs officials.

Although HM Revenue & Customs (HMRC) has denied it is pursuing a campaign against property owners, Revenue Officers claim they have identified 80,000 landlords who may have claimed too much tax relief or failed to declare the amount of rent paid on their properties, or a capital gain made on the sale of houses.

HMRC will use banks, tenants and letting adverts to gather information on offending landlords who have incorrectly claimed deductions for mortgage repayments and so called “ghost” landlords who have failed to declare themselves property owners.

Under the tax laws, unpaid bills can be calculated up to six years back by HMRC, who can also impose penalties and charge interest on the sum.

HMRC will now be writing to landlords to alert them to irregularities in their tax records and liabilities, with buy-to-let owners getting a 90% discount on penalties on offshore income if they admit to unpaid tax before a 22 June deadline.

The 80,000 private landlords - those who have either bought properties to rent or are letting their own homes - comprise 20% of the national total of 400,000 buy-to-let owners.

Landlords' Associations have stated that calculating the tax liability was often made more difficult by the standard of government services available to help landlords through the process.

If you would like any further information, please do not hesitate to contact us.

 

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