Landlords could face a hefty tax bill
The Government has announced that they will now be focusing some of their efforts on cracking down on those landlords who fail to declare their Capital Gains Tax. This new project set out by HM Revenue and Customs will use the Land Registry to help decipher which landlords are failing to declare their property disposals. This new move by the Government is being hailed as a large scale assault on tax evaders in the UK.
Those who are most likely to be affected by this new project are landlords in the buy-to-let market that have been looking to invest in property during the past 24 months. When a property is either disposed of, given away, sold or exchanged they must declare this to the tax man as they are required to pay Capital Gains Tax, although many have failed to do so.
The prosecution for these tax evaders if found guilty is a back dated tax bill, which at the current rate of 18% could be rather significant.
News brought to you by Insure My Let Property providing a high standard of landlord insurance for all UK buy-to-let investors.
March 24th 2010