PROPERTY SPECULATORS THE NEXT TARGET?
Synopsis: HMRC is now targeting amateur property speculators
Following HMRC's targeting of medical professionals the Times has reported that the taxman is now intending to target holiday-home owners and buy-to-let landlords.
HMRC is now utilising the Land Registry to identify people who have bought and sold properties without informing them; and are targeting certain situations:
1. Second-home owners who have claimed maintenance costs in an attempt to reduce their CGT bill. (Although a taxpayer may offset the cost of enhancing a property, they cannot claim for repair or maintenance).
2. Those who have bought and sold a number of properties over a relatively short period. HMRC states that in some cases people who regularly carry out this type of activity are engaged in a trade and are therefore liable to income tax and national insurance.