TaxPersonal TaxBuy-to-let landlords could face further tax hit

Buy-to-let landlords could face further tax hit

A Treasury crackdown on construction industry could catch buy-to-let landlords renovating their properties

Landlords who undertake renovations of buy-to-let properties could be caught
by the new construction industry tax scheme.

According to
the Times
landlords could be forced to file monthly tax returns to HM Revenue
& Customs recording payments to builders and other sub-contractors. Those
who fail to register face fines of up to £5,000.

KPMG’s Alan Nolan said
people buying and redeveloping properties could be classified as running a
construction operation.

An HMRC spokeswoman
said the rules were not meant to catch buy-to-let landlords, adding that a
review of the CIS rules would be undertaken later in the year to avoid any
confusion.

Further reading:

CIS will cost ten times more than HMRC estimates

Delayed construction scheme faces contractor data
crunch

Feared CIS scheme delayed

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