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interestrateripoff

The 3% Tax Surcharge For 2Nd Home To Trigger Hmrc Questions?

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I'm wondering if Osborne's 3% surcharge on buyers of 2nd homes is also a speculative search for undeclared income on rentals where no tax has been paid? You buy a new home but because you have a 2nd home you have to pay the tax and then HMRC inquires what you do with your second home (obviously for those that do declare it there won't be any issues) and if there's any undeclared income that they should know about?

For some people this surcharge could prove a very expensive tax indeed if HMRC impose fines etc.... for rental income where no tax has been paid on it. Is Osborne hoping to extract more tax than just the 3%?

Edited by interestrateripoff

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I'm wondering if Osborne's 3% surcharge on buyers of 2nd homes is also a speculative search for undeclared income on rentals where no tax has been paid? You buy a new home but because you have a 2nd home you have to pay the tax and then HMRC inquires what you do with your second home (obviously for those that do declare it there won't be any issues) and if there's any undeclared income that they should know about?

For some people this surcharge could prove a very expensive tax indeed if HMRC impose fines etc.... for rental income where no tax has been paid on it. Is Osborne hoping to extract more tax than just the 3%?

They could always follow the Portuguese system and just charge you tax on imputed rent of any second property. They know a thing or two, those Portuguese, about taxing foreigners. (Not very good at taxing their own mind you but you can't have everything!)

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They could always follow the Portuguese system and just charge you tax on imputed rent of any second property. They know a thing or two, those Portuguese, about taxing foreigners. (Not very good at taxing their own mind you but you can't have everything!)

And look where it got them, basket case economy, or have they "recovered" by now?

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And look where it got them, basket case economy, or have they "recovered" by now?

That's my point. If they could be even 10% as efficient at collecting tax off the locals as they are off the foreigners they would be fine. In the UK we have it the other way round.

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