INVESTIGATIONS into CGT underpayments saw the taxman scoop £110m in 2012/13.
The figure, comprising underpayments and associated penalties, is a third higher than in the previous year, according to HMRC data analysed by UHY Hacker Young.
Buy-to-let landlords and owners of multiple homes have been targeted by the taxman. Advisers from UHY Hacker Young warn that those claiming a CGT exemption on the sale of a property as principle private residence are under the taxman’s microscope.
Roy Maugham, tax partner at UHY Hacker Young, said: “As buy-to-let investment becomes ever more popular and property prices continue to rise, there is inevitably more tax at stake. So there is greater incentive for people to try to shelter their gains from the taxman amid increasing pressure on HMRC to maximise its tax take.”
The increase In CGT to 28% from 18% in 2010 is believed to have pushed the use of more tax planning schemes.
“There’s been a lot of giving with one hand and taking away with the other in the last few years as far as taxing entrepreneurs on business sales are concerned,” said Maugham. “However with such a big headline increase in the top rate of CGT, there is bound to be a sharper focus on reducing the potential bill through greater use of tax planning schemes.”
Total CGT receipts were £3.9bn during the period.
HMRC has outlined a change in VAT policy to the treatment of dwellings that have been formed from either the construction of new buildings, or from the conversion of non-residential buildings
Let us hope that valuable asset protection vehicles are not made prohibitively burdensome or abolished in the desire to “simplify” IHT
The government is pressing ahead with changes to the way it taxes individuals with a foreign domicile
I will feel slightly awkward when I write to the client who is about to receive a large invoice from the PAYE expert, offering him the fee protection going forward