HMRC's property tax campaign: The lowdown

Repeated queries in AccountingWEB's Any Answers section indicates that something is stirring up interest in property tax issues. Jennifer Adams notes the formation of a new HMRC property sales campaign and discusses the implications for advisers.

The backlog of 200,000 tax cases waiting to go to tribunal would take 38 years to clear, which is something the media frequently misses while engrossed in 'tax dodge' headlines, Bearing in mind the likely delays and costs, you think HMRC has better things to do and more certain cases to tackle than those focusing on principal private residence (PPR) relief for capital gains tax (CGT) - especially since its supposed to be one of the more straightforward, well known and well used tax reliefs.

Over the past three years, more than a dozen cases been heard and there has been a noticeable increase in questions being asked on Any Answers on property tax and PPR. Could this be a sign that HMRC’s Designated Compliance Unit for property has targeted PPR as part of its tax evasion policy and is not letting go?

In response, AccountingWEB is launching a campaign of its own focusing on property tax matters over the next few months. This first article looks at HMRC's latest property tax evasion campaign and at how HMRC chooses cases to investigate.

Continued...

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Comments

Knocking on doors in

AddsUP2Me | | Permalink

Knocking on doors in Wimbledon week asking people who they are and what they are doing? Wowzers.

grecianwebb's picture

Wimbledon

grecianwebb | | Permalink

I'd suspect knocking on doors during Wimbledon week was to ensure these people declare the rent where they have moved out and rent-a-room cannot be contended, as opposed to worrying about the CGT given that would be minimal in the scheme of things.

JAADAMS's picture

Yes... 'grecianwebb' ...

JAADAMS | | Permalink

What I was trying to point out was that HMRC have ways of getting to know matters and initially the 'Wimbledon' visits would indeed be to find out whether the rental income was being declared.

This will therefore then be on HMRC's records so that when and if the property is subsequently sold CGT could  be checked out.

I met an exHMRC inspector who knew of the 'Wimbledon' visits and said that they also discovered some properties that had been let for a while and not declared rental income and hence would be subject to CGT when sold.

By the way...in the article under 'Property websites' I had initially quoted the 'Rightmove' site which does estimate the capital appreciation etc etc but the name appears to have been deleted.

 

HMRC property tax campaign

Martin B | | Permalink

flagged

Ubique

David Gordon FCCA | | Permalink

With this  initiative, and that intiative,

One wonders who they have left at home to mind the shop.

 

Old concern

moneymanager | | Permalink

I am sorry to say that in the earlier days of the extension of a duty to report suspected money-laundering (i.e. broad definition) I found myself obliged to make a report on a client in just this scenario. A mutiple property landlord declaring a large detached house in N London as his PR and actually living in a small flat round the corner.

I believe in tax mitigation which whas what I was doing for the client but his was evasion in my book.

But look on the brigth side; just think how many of the great and the good in 'the House' will be shaking in their boots over all that flipping(ek) they did. About time too.