Landlords Face Tax Crackdown
Published / Last Updated on 27/03/2008
Landlords Face Tax Crackdown
Landlords face a tax crackdown as HM Revenue and Customs HMRC starts its search for buy-to-let investors who have not declared their rental income.
HMRC has sent out an initial 500 letters targeting landlords who it believes may not have declared their buy-to-let properties on their tax return. The letters ask for details of their property investment activity over the past six years, including a detailed breakdown of costs such as repairs and professional fees. Depending on the results of the initiative, HM Revenue and Customs may issue a further 1,500 letters over the next few months.
Our view
People who receive these letters need to act and deal with the matter. Ignoring the letters will mean higher tax penalties and ultimately prosecution.
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