In August this year a Hampshire landlord, Richard Fuller, was jailed for two years and three months after evading £158,000 in Capital Gains Tax. The landlord failed to declare tax from the sale of two properties between 2006 and 2013 and is now facing asset fortiture proceedings to repay the owed tax.
HMRC are cracking down on tax evasion and avoidance. Three consultation papers were released last year on how to deal with those who fail to declare all or some of their moneymaking property activities. HMRC’s computer system, Connect, can sift through masses of disparate systems to identify buy-to-let activities, leading to many criminal investigations
Assistant director at the HMRC's fraud investigation team said,
"HMRC will continue to pursue those who attempt to hide their gains on assets, their income, and investigate those who attack the tax system"
In order to minimise tax liability whilst remaining compliant, Incisive Accounting advise that landlords seek independent financial advice from a specialist accountant. Experienced accountants such as Incisive will be able to help restructure affairs to take advantage of available deductions and reliefs.