HMRC Gun For Landlords
HMRC hopes to bring in £5 million with a new taskforce targeting people who have failed to disclose income from property.
The taskforce will target those who have sold one or more properties in the North West and north Wales and have not paid capital gains tax or disclosed rental income.
HMRC said it had collected more than £190 million as a result of taskforces it has launched since 2011. It has recovered £12 million as a result of property rental taskforces operating in London, south east England and Yorkshire with over 80 cases currently under criminal investigation.
HMRC also said it expected its taskforces to bring in over £100 million during 2014-2015.
Jennie Granger, HMRC director general of enforcement and compliance, said HMRC launched taskforces in sectors and areas where it has detected a high risk of tax evasion.
‘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,’ she said.
‘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,’ she said.
Andrew Lloyd, Tax Partner in Baker Tilly (now RSM) said: “HMRC is launching this task force because it has good reason to believe that tax evasion has been taking place among property owners and landlords in the North West and North Wales.
“It would therefore be sensible for any individual who rents out property or has recently sold property at a profit to urgently review their tax affairs to make sure they are in order.
“If anyone has reason to believe that their tax arrangements are not completely up to date then they should address the matter as a high priority.”