Landlord taxation could be 'scrutinised'

News Category: Management

The finances of landlords and letting agents could fall under further scrutiny in future, it has been suggested.

According to a report by the Guardian, HM Revenue & Customs (HMRC) might place a greater emphasis on the information provided in self-assessment tax returns filled out by rental accommodation owners.

Some 800,000 buy-to-let properties currently exist in the UK.

Britons have until the end of January to complete their tax return forms online.

Although the implications might not be felt for up to six years, greater scrutiny on the part of the Inland Revenue can take the form of a formal investigation.

The report urged people to offer extra information so they are less likely to be asked for more information later on.

Stephen Herring, senior tax partner at BDO Stoy Hayward, commented: "Even if people have made proper disclosure, they [HMRC] are saying it could have been a fuller disclosure."

Figures published by Rentright revealed that the average rent received by UK landlords in November was £621, compared to the £836 received in the same month in 2007.

How to stay legally compliant with letting agent software.