Posted by Nick Day on 09 Sep 2014

HMRC Task Force Targets South West Property Owners

HM Revenue & Customs (HMRC) is turning its attention to those in the south-west of England and south Wales who sell and/or rent out properties.

The HMRC task force will use data from the Valuation Office Agency (an executive agency of HMRC) to target tax dodgers and aims to collect the tax of £5 million.

Similar task forces have reportedly collected a tax of over £190 million since being launched in the 2011-12 year.

HMRC’s Director General of Enforcement and Compliance, Jennie Grainger, stated:

“HMRC taskforces are deployed in sectors and areas where we’ve detected a high risk of tax evasion. For example, in a previous property taskforce in London in 2013 we uncovered a barrister who had evaded £471,512 in unreturned capital gains. The people being targeted by our taskforces have no intention of playing by the rules and could end up facing a heavy fine or even a criminal conviction.  A Hertfordshire property consultant who failed to declare or pay Capital Gains Tax and rental income on a number of properties was uncovered by an HMRC taskforce in 2013 and, as well as paying the tax and interest due, now has a criminal record.  If you haven’t declared all your income, we will find you and investigate.”

The people being targeted by our task forces have no intention of playing by the rules and could end up facing a heavy fine or even a criminal conviction. A Hertfordshire property consultant who failed to declare or pay Capital Gains Tax and rental income on a number of properties was uncovered by an HMRC taskforce in 2013 and, as well as paying the tax and interest due, now has a criminal record. If you haven’t declared all your income, we will find you and investigate.”

Tax Innovations can assist you in calculating any profits/gains/losses from property income/sales and disclosing any liabilities to HMRC.

If these are disclosed voluntarily and on an unprompted basis it is usually possible to limit the penalties charged by HMRC.

UK tax residents and non-residents that own UK property are liable to tax on UK property rental profits. UK tax residents are liable to tax on capital gains made from the sale of investment properties.

Non-residents are currently not liable to tax on capital gains made from the sales of UK residential/rental property but the Treasury is consulting with a view to the possible introduction of a tax charge for non-residents from April 2015 onwards.

The further articles below from our website are on related issues and may be of interest:

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