Thursday, 31 May 2007

The taxman cometh.....

Here is one more reason to dump those buy-to-let properties; the taxman is about to come-a-calling.

What is the likelihood that our part-time property speculators kept their accounts in good order? Not very high, I'd say. Most of these buy-to-let jokers will probably end up paying too much tax, as they failed to keep receipts of repairs and other such tax-reducing paperwork.

Taxman to swoop on buy-to-let

HM Revenue & Customs will target tens of thousands of property ownerswho have failed to declare rental income or capital gains made from sales or claimed too much tax relief. Revenue officers will be given powers to impose financial penalties which can be backdated six years and equal the value of the unpaid tax plus interest.

The hardline approach could see many small-scale landlords forced to sell as the tax bill could equate to more than the value of the property. Banks, tenants and letting adverts will be used to gather information on 'ghost'; landlordswho have failed to declare themselves property owners or incorrectly claimed deductions for mortgage repayments. This comes as part of a campaign to tighten up the buy-to-let market.

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