HMRC clamps down on buy-to-let expats
The government is planning a crackdown on expatriates with buy-to-let properties in the UK who neglect to declare rental income.
A number of Brits now living overseas have retained their foothold on the property ladder in this country, but HM Revenue & Customs (HMRC) suspects that many fail to pay the relevant taxes.
In a pilot exercise, revenue officials have issued informal warnings to suspected tax dodgers, in advance of more rigorous interventions planned for later this year.
Expatriated property owners supplementing their income with buy-to-let interests in the UK will face fines for failing to declare rental returns.
"We have already seen HMRC use its powers to require banks to provide information regarding specific or unnamed/unknown taxpayers holding offshore bank accounts," noted John Cassidy, tax investigations partner at PKF.
"Now the Revenue is becoming more active in using government data from stamp duty land tax returns and other sources to pinpoint individuals who maybe letting properties but do not declare rental income on their self-assessment tax returns."
Expats are not obliged to respond to the "intervention" letters, as they may not be making any taxable profits, but HMRC will be following up any identified tax risks.
Published 26th March, 2008
© 2008 Estates IT Limited
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The government is planning a crackdown on expatriates with buy-to-let properties in the UK who neglect to declare rental income.