Many expats who retain their UK properties to keep a foothold in the British property market or to supplement their pensions after they have retired abroad, could face penalties for the non-payment of tax.
HM Revenue & Customs (HMRC) has sent out informal ‘intervention’ letters as a pilot exercise in advance of a programme of interventions later this year, The Daily Telegraph reports.
John Cassidy, PKF Accountants & Business Advisers tax investigations partner, said he had already seen HMRC use its powers to require banks to provide information regarding specific or unnamed/unknown taxpayers holding offshore bank accounts.
‘Now the Revenue is becoming more active in using government data from stamp duty land tax returns and other sources to pinpoint individuals who may be letting properties but do not declare rental income on their self-assessment tax returns,’ he said.
Further reading:
HMRC accused of disregard for legal system
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