The Tax Man Cometh!

LoadingFavourite

This topic contains 11 replies, has 6 voices, and was last updated by Profile photo of Anonymous Anonymous 5 years, 1 month ago.

  • Author
    Posts
  • #56402
    Profile photo of logan
    logan
    Participant

    HMRC to target second home owners in Spain and France who rent out.
    Another nail in the coffin of second home ownership?

    http://www.telegraph.co.uk/news/politics/8861510/Taxman-pursues-Britons-hiding-holiday-rent-on-overseas-homes.html

  • #106324
    Profile photo of Anonymous
    Anonymous
    Participant

    @logan wrote:

    HMRC to target second home owners in Spain and France who rent out.
    Another nail in the coffin of second home ownership?

    http://www.telegraph.co.uk/news/politics/8861510/Taxman-pursues-Britons-hiding-holiday-rent-on-overseas-homes.html

    This is just a scare. There is no way in hell they can do this.

  • #106326
    Profile photo of logan
    logan
    Participant

    I would not bet against it flosmichael.
    HMRC are linking up to the fiscal registry of Spain and France where most Brits have second homes. I have personal experience of that. They are talking to each other.
    If you pay the none resident property tax HMRC will know about it.

  • #106329
    Profile photo of Anonymous
    Anonymous
    Participant

    @logan wrote:

    I would not bet against it flosmichael.
    HMRC are linking up to the fiscal registry of Spain and France where most Brits have second homes. I have personal experience of that. They are talking to each other.
    If you pay the none resident property tax HMRC will know about it.

    There are 200 people in the so called strong HMRC team.

    There are about 100K+ properties for rent on the rental portals like holidaylettings,etc. I am sure very few declare any rental income and they get paid by private parties without anybody else knowing it. What are the HMRC people going to do about it? Nothing.

  • #106337
    Profile photo of petej
    petej
    Participant

    @flosmichael wrote:

    There are about 100K+ properties for rent on the rental portals like holidaylettings,etc. I am sure very few declare any rental income and they get paid by private parties without anybody else knowing it. What are the HMRC people going to do about it? Nothing.

    From what I have heard the 200 people at HMRC will target highest rate (50%) taxpayers in the UK so those earning over £150.000 a year,

    When we were looking to buy some 2-3 years ago a few villas we looked at were being rented by there German owners over summer, when the agent was talking she said payments are made in cash, I said CASH and she said “ but of course”, as long as they are not sticking it in the bank what can they do!

  • #106340
    Profile photo of Anonymous
    Anonymous
    Participant

    @petej wrote:

    @flosmichael wrote:
    There are about 100K+ properties for rent on the rental portals like holidaylettings,etc. I am sure very few declare any rental income and they get paid by private parties without anybody else knowing it. What are the HMRC people going to do about it? Nothing.

    From what I have heard the 200 people at HMRC will target highest rate (50%) taxpayers in the UK so those earning over £150.000 a year,

    That would be feasible.

  • #106344
    Profile photo of katy
    katy
    Spectator

    I think they will find that most sensible rich have their properties owned by an off-shore company or a trust.

  • #106345
    Profile photo of logan
    logan
    Participant

    There are sensible ways to avoid the glare of the tax man if you are a property owners receiving income from another country. It is not sensible to take the ‘flosmichael’ approach and have total contempt for the revenue and their abilities to track you down.
    In my long business experience with the revenue I find that they are neither stupid or incompetent. I have had a few unpleasant interrogations over the years and being forced to account in retrospective forensic detail is not something I would recommend.
    If you receive income from property abroad, not declaring at least part of that income will eventually be a simple route to a very unpleasant experience which will cost you dearly.
    It’s rather similar to taking preventative medicine.

  • #106346
    Profile photo of Anonymous
    Anonymous
    Participant

    @logan wrote:

    There are sensible ways to avoid the glare of the tax man if you are a property owners receiving income from another country. It is not sensible to take the ‘flosmichael’ approach and have total contempt for the revenue and their abilities to track you down.
    In my long business experience with the revenue I find that they are neither stupid or incompetent. I have had a few unpleasant interrogations over the years and being forced to account in retrospective forensic detail is not something I would recommend.
    If you receive income from property abroad, not declaring at least part of that income will eventually be a simple route to a very unpleasant experience which will cost you dearly.
    It’s rather similar to taking preventative medicine.

    I do not have contempt towards anybody but there is no way that they can know who gets rental income for their apartments as the income is not declared by the owners. Are they going to check the bank accounts of everybody who has apartments in say Spain?
    As I know, Spain forces owners to pay something , irrespective of them having or not having rental income. I do not think that UK can also force anybody who owns in Spain to pay something. How could they force people with no rental income to pay? How would they know who receives rental income and who does not?

  • #106352
    Profile photo of logan
    logan
    Participant

    Well one option is do as the Spanish do. By the assumption that if you own a property you rent it and receive an income. Finding out that is a relatively simple matter. Trawling land registry records will reveal all.
    Then impose a fixed penalty which is likely to be a lower amount than you actually would pay if you declared the full amount.
    It would then be up to you to prove that you receive nothing, not for them to prove you do.
    Going down that route of declaring something which you know to be dishonest could get you banged up.
    It would also bring you under closer scrutiny than if you just paid up as most folks would.
    Result, everyone’s happy, well almost.
    Underestimate the revenue at your peril.

  • #106360
    Profile photo of peterhun
    peterhun
    Participant

    @logan wrote:

    I would not bet against it flosmichael.
    HMRC are linking up to the fiscal registry of Spain and France where most Brits have second homes. I have personal experience of that. They are talking to each other.
    If you pay the none resident property tax HMRC will know about it.

    Its already being done in France, I know someone who was affected.

  • #106368
    Profile photo of Anonymous
    Anonymous
    Participant

    loved that wealthy guy from Greece tonite on SKY TV who justified tax evasion

    ‘Why should I pay taxes to a government that siphons it offshore and fails to apply tax revenues on public infrastructure’

    I am a tax protector not evader 😀

You must be logged in to reply to this topic.