A Hampshire landlord has been handed a two year jail sentence after failing to declare Capital Gains Tax on rental properties.
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The man evaded over £157,000 in CGT on the sale of two properties near Aldershot, having failed to declare the money between 2006 and 2013.
The landlord was arrested at Heathrow in 2014 on re-entering the UK from holiday, and was jailed earlier this month. It is expected that he will be the subject of asset forfeiture proceedings in order to recoup the tax owed.
Landlords in the crosshairs
The case is the latest in HMRC’s continued crackdown on tax evasion amongst landlords. The property taskforce uses data including that found in the Land Registry and the electoral roll to identify landlords who may be underpaying.
HMRC’s efforts now span almost all of the UK, following a gradual regional roll-out over the last five years.
Landlords have long been warned over the risks associated with tax evasion, and the taskforce’s investigations have now yielded a number of criminal prosecutions.
Responding to the Hampshire landlord’s sentencing, HMRC’s Fraud Investigation Service assistant director Richard Wilkinson said the man “thought he was above the law, and decided not to declare or pay the tax due from the sale of some of his property portfolio.
“It is simply not acceptable to steal from UK taxpayers. HMRC will continue to pursue those who attempt to hide their gains on assets and income, and investigate those who attack the tax system.”
What should landlords do about property tax?
Landlords who are concerned about their tax position should seek independent advice from a specialist accountant.
Simply Business publishes regular news on developments in landlord and property tax and affairs, which you can read in the Landlord section of our Knowledge Centre. Bear in mind that this does not constitute legal or financial advice.