Taxman targeting Bedfordshire landlords and property owners
Following much publicity from HM Revenue & Customs over the last year or so aimed at landlords and property investors who may not have declared and paid the appropriate tax, the campaign has reached a local level.
As well as scrutinising records of transactions in property, the Taxman is contacting Bedfordshire estate agents and letting agencies demanding that they hand over details of their customers and the properties that they manage. By law, these bodies have no option but to comply with the Taxman’s demands.
The Taxman is also writing directly to people he believes may have sold property and not made the appropriate declarations and where applicable paid the correct tax liability.
For the majority of landlords and property owners this should not be of any concern as they will have ensured that their income and capital gains have all been dealt with correctly.
However, there are a number of situations where problems can arise and these include:-
- The Taxman can misinterpret the information he receives leading to enquiries that can be time consuming and stressful to satisfactorily resolve.
- Some landlords incorrectly believe that where there is no profit from their letting e.g. where expenses exceed income, they do not have to declare their letting activities to the Taxman.
- If you have or are about to sell a property which you believe is your main residence and therefore any gain arising will be exempt from capital gains tax are you certain that the exemption will apply? This is particularly relevant where more than one property is owned simultaneously or where the period of ownership or personal residence is short.
We can help give peace of mind if you are affected by any of the above situations or have any concerns about your tax affairs:
- We can help deal with the Taxman’s enquiries assisting to quickly resolve any queries and ensuring that you pay no more than the correct amount of tax.
- We can assist with the preparation of tax returns for property letting and advise you on what expenses can be correctly claimed against letting income. If you need to inform the Taxman of previously unreported lettings we can ensure that this is done efficiently and without fuss.
- If you have sold or are about to sell a property and you believe that any gain should be exempt from tax we can advise on what records should be kept and what actions you can take in support of a claim for exemption.
- If you believe that you may have not made the correct declaration to the Taxman we can assist you with any disclosure and ensure that where penalties may be imposed these are kept to a minimum.
Contact Paul Southward for further information