HMRC are targeting buy-to-let landlords who haven’t been completing tax returns, this includes UK and overseas holiday homes that are rented out. There is currently a tax amnesty known as the Let Property Campaign giving individuals the opportunity to bring their tax affairs up to date with greatly reduced penalties. This isn’t available to Companies or Commercial property owners, but it is the ideal opportunity for residential buy-to-let landlords to clear any historic tax debts and rest easy in the knowledge that HMRC won’t be banging on the door.
Penalties under this amnesty are typically 10% – 20% of the tax due plus interest. If you don’t take advantage of this campaign and HMRC discovers your underpayment the penalty will be up to 100% for UK properties and up to 200% for foreign properties.
We have a lot of experience with property rental tax from individuals with one buy-to-let flat to companies with a portfolio of properties. We know what you can claim as a valid expense or capital allowance. We can also deal with the current HMRC Amnesty for undeclared property income.
But don’t delay the Amnesty will only be available for a few months and will likely be closed by the summer of 2014.
Useful Link: HMRC – Let Property Amnesty