HM Revenue & Customs (HMRC) is targeting up to a million landlords in an effort to track down landlords who could be liable to pay extra tax on their buy-to-let rental income.
HMRC has made its latest letter drop to landlords, warning them of the new measures which will come into force next April, givubg government officers the right to inspect landlords' records in their home, The Daily Telegraph reports.
‘It's likely that only the most serious cases will warrant a knock on the door from the taxman, but it signals HMRC's intent to pursue persistent tax evaders,’ Phil Espin, Grant Thornton tax director, said.
There are at present more than one million buy-to-let mortgages in the UK, compared with 120,000 in 2000, reflecting the huge rise in popularity of this type of investment over the past decade, prompting many landlords to buy two or three properties for renting out to supplement their retirement income.
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