HMRC Recovers ВЈ136m from Private Landlords

HMRC is reported to be achieving record repayments of Capital Gains Tax following tax investigations launched into the affairs of individuals.

Where HMRC has evidence to suggest that an individual has underpaid tax, deliberately or otherwise, it will launch an investigation in order to establish how much tax has been avoided.

In this instance, the focus was on owners of buy-to-let properties, where gains and profits have not been declared. HMRC has been putting increased resources into its targeting of private landlords.

A report suggests that HMRC recovered a record £136 million in 2013-14 from private landlords following tax investigations into Capital Gains Tax avoidance. The figure is estimated to be an increase of 24% on the previous year.

In August 2014 HMRC reportedly sent letters to over 40,000 landlords that it suspected of tax avoidance. HMRC estimates that there are around 1.5 million individuals who own second properties. However, only 500,000 are registered with HMRC.

HMRC has launched a number of campaigns over the last 18 months which are aimed at clamping down on tax avoidance in the UK. The Let Property Campaign was launched to encourage private landlords to come forward and clarify their affairs.

If you own a second property and are unsure about your tax liabilities you should seek advice from a tax investigation and voluntary disclosures professional.

At Forths we have considerable experience advising individuals who are concerned about facing a HMRC investigation. With HMRC continuing to close the net, the time to act is now.

For more information about the Let Property Campaign or to speak to one of our experienced tax investigations professionals in complete confidence, call 0113 387 5670 or fill out an Enquiry Form and we will contact you directly.