Anorak News | Buy-To-Letters Beware: The Taxman Cometh

Buy-To-Letters Beware: The Taxman Cometh

by | 29th, May 2007

gordon-brown.jpgTHE Government’s quest to squeeze every last penny out of us continues with news that a large number of buy-to-let property owners could be facing a major tax disaster. (Pic: Beau Bo D’Or)

According to the Times, 80,000 buy-to-let landlords may have claimed too much tax relief or have failed to accurately declare the amount of rent they are receiving. And now the taxman is coming to take it all back.

Worryingly for landlords, HM Revenue & Customs can claim back unpaid tax from as far back as six years, which could leave many facing tax bills so huge that they may even have to sell their property.

Chas Roy-Chowdhury, head of taxation on at the Association of Chartered Certified Accountants, hopes HM Revenue & Customs use the softly softly approach.

Says he: “Buy-to-let investors are generally not tax evaders. Many think the mortgage interest is at such a level that it covers the rental income and that they don’t have any additional tax to pay. But the tax situation is so complex they may well have tax to pay.”

Serves them all right for owning more than one property.

The Gambling Commission is considering banning ‘wacky’ bets such as which player gets the first yellow card in a football match as these wagers apparently open the way for corruption.

Posted: 29th, May 2007 | In: Money Comment | TrackBack | Permalink