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Business Newsletters - Autumn 2007
HMRC target buy to let landlords
Over recent months many media outlets have reported that HMRC are intending to target landlords who let property.
HMRC’s concern appears to be two-fold. The buy to let market has expanded massively over the past ten years and many landlords who buy to let property attempt to sort out their tax position themselves, which can lead to misunderstandings and errors in a complex area.
Particularly common problem areas with buy to let properties include:
- claiming too much tax relief for expenses against property income
- failing to declare the amount of rent received from the let property
- failing to declare a capital gain on the sale of let property.
However, HMRC have responded with a press release; stating that they were not planning a tax crackdown but that:
‘HMRC is planning to take a concerted approach to helping landlords of all descriptions (not just in the buy to let market) to understand and comply with their tax obligations in what they recognise to be a complex area … to ensure that the correct amount is paid.’
Crackdown or not … we’ll let you decide!
