12-05-2008
Tax crackdown on 2nd property owners
The government has launched a new initiative to keep a closer watch on those who own a second property and landlords with buy-to-lets to make sure they are not missing out on any tax payments.
There could be large fines for those who haven't paid income tax on their property, believing it to be exempt because they are making no profit.
“HMRC believes this campaign will generate significant arrears from unsuspecting taxpayers,” said Alan McCann, a Director of Tax at business advisers DTE.
“HMRC is confident of success because information from stamp duty land tax returns means it can match properties to individuals’ declared principal private residences and take matters from there.”
The campaign is initially a pilot exercise with an option to launch a major campaign depending on results. The first stages involve HMRC communications requesting landlords to take action.