Reply to: Oh Dear (naughty BTL'ers)

[scooterscot]

tut tut

Pah. Taxes are for the little people.

[Diver]

That article links to a PDF pro-forma letter from the revenue (although it's not clear whether this is intended for managing agents or accountants).

It would be a classic wind-up to prepare a slightly amended version, quoting a huge amount deemed to be owed, and post it in a standard tax envelope to some BTLer you know.

(HMR&C are so chaotically disorganised these days there's practically no chance the ruse would be detected, and the worse that could happen is a couple of frantic phone calls by the BTLer to sort it out.)

That is just evil

[Marina]

That article links to a PDF pro-forma letter from the revenue (although it's not clear whether this is intended for managing agents or accountants).

It would be a classic wind-up to prepare a slightly amended version, quoting a huge amount deemed to be owed, and post it in a standard tax envelope to some BTLer you know.

(HMR&C are so chaotically disorganised these days there's practically no chance the ruse would be detected, and the worse that could happen is a couple of frantic phone calls by the BTLer to sort it out.)

[Diver]

All I could say is Eeeek!!!!

Frantic call to accountant ensued

Phew! it is all covered under the DD and they in fact will owe me money once the maintenance costs are deducted

[rootsnall]

Under the new disclosure rules, your solicitor is obliged to tell them if the house that you have just sold is not your PPR. HMRC don't have to do any checking up at all.

tim

That should be interesting ! I just flogged a house and the solicitor didn't ask the question and would not of known either way.

[tim123]

Any sale will be registered with the land registry but nobody will be working out the profit made and if it is liable for CGT. You are meant to do that yourself and stick it on your self assessment. The IR would have to knock up a quick program to look for healthy profits made on sales in the last few years and check if the owners lived there and then look at their tax returns. I suspect that is beyond them.

Under the new disclosure rules, your solicitor is obliged to tell them if the house that you have just sold is not your PPR. HMRC don't have to do any checking up at all.

tim

[Sockpuppet]

Great! Just in time for me to start renting. I see rents going up very soon.

Or house prices going down when they are all repo'd to pay the tax.

[bogeyman]

Or at least it might pan out that way if our Judiciary were not being "advised" by the HMG to consider non-custodial sentences for all but the most heinous of crimes because the gaols are full to bursting. You know the sort of villain they want to incarcerate, those pensioners that refuse or simply cannot afford to pay their Council Tax. Crucifixion is too good for THEM.

Well in their minds (oh God, let us not inhabit them for too long) the most heinous crime is denying the state the flabby tit from which it endlessly sucks - tax!

They can always find a cell for tax dodgers. It's the muggers and stabbers that seem to require lenient sentences.

[ChimpMaster]

It's great to see the government trying to squeeze every single penny of tax they can from the most difficult and/or unlikely of sources.

Just goes to show what a farce they've made of public finances that they now have to go around begging for taxation. I hate incompetence, ineptitude and arrogance - all features of the current government.

[shaunbhoy]

I know HMRC is the Acme of incompetence, but the consequences of not declaring substantial amounts of rental income year upon year are severe indeed (ending in gaol, probably).

Or at least it might pan out that way if our Judiciary were not being "advised" by the HMG to consider non-custodial sentences for all but the most heinous of crimes because the gaols are full to bursting. You know the sort of villain they want to incarcerate, those pensioners that refuse or simply cannot afford to pay their Council Tax. Crucifixion is too good for THEM.

[rootsnall]

Have you read the letter? It's obvious what HMRC are doing - they will just send out millions of these letters to targeted areas where individuals are likely to own BTL property.

Then they will sit back and pray that a reasonable % of these letters reap a "fair" amount of tax.

You really didn't think that any government department is clever enough to actually do this properly?

NO. They did this with the overseas interest thing but hardly anybody owned up and I don't think they've got the resources to do anything about it.

[ChimpMaster]

Have you read the letter? It's obvious what HMRC are doing - they will just send out millions of these letters to targeted areas where individuals are likely to own BTL property.

Then they will sit back and pray that a reasonable % of these letters reap a "fair" amount of tax.

You really didn't think that any government department is clever enough to actually do this properly?

[rootsnall]

Never mind selling without paying CGT! How does one do that anyway? Do they not employ solicitors who are obliged (AFAIK) to inform the tax man?

Any sale will be registered with the land registry but nobody will be working out the profit made and if it is liable for CGT. You are meant to do that yourself and stick it on your self assessment. The IR would have to knock up a quick program to look for healthy profits made on sales in the last few years and check if the owners lived there and then look at their tax returns. I suspect that is beyond them.

[Moose423956]

tut tut

Great! Just in time for me to start renting. I see rents going up very soon.

[bogeyman]

I can't believe many landlords are actually stupid enough to think they'd get away with it - especially the ones using managing agents.

I know HMRC is the Acme of incompetence, but the consequences of not declaring substantial amounts of rental income year upon year are severe indeed (ending in gaol, probably).

Never mind selling without paying CGT! How does one do that anyway? Do they not employ solicitors who are obliged (AFAIK) to inform the tax man?