Holiday Lettings news - HMRC clamps down on buy-to-let landlords

HMRC clamps down on buy-to-let landlords

HM Revenue and Customs (HMRC) is clamping down on buy-to-let landlords who have failed to declare tax liabilities. From next year, HMRC inspectors will be visiting landlords to claim the tax that should be paid on rental income and any capital gains made on the sale of a property.

From April 1st 2009, HMRC officials will be able to turn up at business premises and request access to records, reports The Financial Times. This can include the landlord's home if this is where the records are kept.

Normally, notice will be given to the buy-to-let landlord seven days before a visit is due to take place, but under exceptional circumstances no notice need be given.

The move comes as HMRC steps up its campaign against tax-evading buy-to-let investors, who are thought to be renting out properties and failing to declare the rental income on their tax returns. Unregistered buy-to-let landlords are reportedly being identified by HMRC officials scouring advertising cards in newsagents and supermarkets.

HMRC has already sent out more than 2,000 letters to landlords who have been identified as potentially having tax to pay and tax officials are said to be pleased with the results so far.

This story was brought to you by holidaylettings.co.uk, the UK's No.1 holiday home website.


Related Stories
Reform of British private rented sector recommended
HMRC backtracking on offshore pension schemes
UK's buy-to-let sector goes through the roof
Property owners in Greece need to register their property Print this article