Last month, HM Revenue & Customs (HMRC) underlined their commitment to crackdown on property investors suspected of avoiding tax.
Two men from London and Essex were arrested as part of an investigation into an alleged Capital Gains Tax (CGT) and Income Tax fraud. HMRC believe the pair had failed to declare CGT on a number of properties that they had bought and sold.
Alan Tully, assistant director of HMRC criminal investigations, said the “Operation is part of a HMRC property taskforce campaign to clamp down on those believed to be dodging capital gains tax.”
It is strongly recommend that all landlords and property investors with undeclared income come forward and regularise their tax affairs as soon as possible.
Let Property Campaign
HMRC are continuing to target buy-to-let and other private landlords with the Let Property Campaign which gives those with undeclared rental income an opportunity to settle and regularise their tax affairs on favourable terms.
Lower penalties and affordable payment plans can often be negotiated for those that make an unprompted voluntary disclosure.
In 2014, around 40,000 landlords who failed to come forward were sent a ‘promoted disclosure’ letter, providing a 30 day window to make contact and regularise their tax affairs, however would not receive the same favourable benefits.
HMRC has so far raised £20 million in additional tax as a result of a crackdown on landlords. This figure is expected to rise significantly in 2015.
Confidential advice – Contact us
Tax specialist Debbie Dolega and her team have over 100 years of combined experience settling tax investigations (including Let Property Disclosures) on favourable terms.