Friday, Feb 22, 2008

Tax crackdown on buy-to-let landlords

Guardian: Tax crackdown on buy-to-let landlords

My heart is bleeding. I wonder if there is a snitch phone number (like for benefit cheats) number to wipe
out the smug dinner party boats ?

"Buy-to-let investors who have not paid tax on money made from letting or selling a property are to be targeted in a major crackdown that accountants say will net millions of pounds for HM Revenue & Customs."

Posted by doomwatch @ 12:09 PM (759 views) Add Comment

13 Comments

1. This comment has been removed as it was found to be in breach of our Blog Policies.

 

2. Stevie Dee said...

SELL!!! SELL!!! SELL!!! Where is Confused76.. He would love this story...

Friday, February 22, 2008 12:23PM Report Comment
 

3. An Bearin Bui said...

Impresive - the government only waited ten years after the BTL boom began to start cracking down on the massive tax loophole that it has created. Good to know for future reference that you can get away with tax evasion for at least a decade before the government actually starts to notice or care...

Friday, February 22, 2008 12:28PM Report Comment
 

4. Mark Wadsworth said...

There won't be much income tax in it once you deduct borrowing, running costs and 10% wear and tear allowance from rent. But there will be capital losses in 08-09 ... that you can't deduct from whatever small profits they may have made. Neither can rental losses or capital losses be deducted from other income. Tee hee.

Friday, February 22, 2008 12:31PM Report Comment
 

5. Jonb said...

I think the potential for unpaid tax is overstated. Most BTL landlords make a loss on their rental income business - the rent is less than the mortgage interest, and there are other expenses as well.

CGT is only payable if and when you sell the property, and anyone who bought a typical city centre rabbit hutch in the past few years is likely to make a capital loss on that as well.

Friday, February 22, 2008 12:46PM Report Comment
 

6. hpwatcher said...

One for you Greenbay! C'mon?

Tsk.....he is never there when you want him!

Friday, February 22, 2008 12:49PM Report Comment
 

7. paul said...

Greenbay is too busy sweating over his tax assessments for the last couple of years.

Friday, February 22, 2008 12:51PM Report Comment
 

8. Stevie Dee said...

He's left the country

Friday, February 22, 2008 12:54PM Report Comment
 

9. becky said...

@doomwatch Thanks for posting the correct link. I've just realised that I'd linked to a completely different article in my post!! That'll teach me not to have too many windows open at once!!

Friday, February 22, 2008 12:54PM Report Comment
 

10. Downsized And Waiting said...

"Offenders will be forced to repay taxes dating back six years and could face additional fines and penalties equal to 100% of the total tax owed."

OUCH!

Friday, February 22, 2008 12:54PM Report Comment
 

11. doomwatch said...

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/ContactOrDealWithHMRC/DG_10010579

Friday, February 22, 2008 12:59PM Report Comment
 

12. Basildonbond said...

Problem is many of the more dubious BTL landlords tend to let through the private ads. rather than through letting agencies. It doesn't sound like this crackdown (cross-referecing tax returns with letting agency details) is going to pick up these people..

Friday, February 22, 2008 01:54PM Report Comment
 

13. crash bandicoot said...

I said (guessed) a couple of weeks back that the tax office had been ignoring CGT on BTL sales. This was because there was some briefing that mentioned BTL liabilities with respect to CGT. Now what do you know? Once there is a hole in the public finance budget, CGT can be backdated by 6 years.

On another subject I think that either Greenbay is extremley clever or is a collection of several people with the same username. It is most unusual to see the amount of variation that they display in their writing style from just one person. I think that it is probably just a group trolling joke, although some folks on here seemed to know him.

Friday, February 22, 2008 03:01PM Report Comment
 

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