HMRC

HMRC is now looking at landlords who incorporated their property business but have not reported a capital gain on their 2017/18 self-assessment tax return and are sending out letters.  The letters ask the tax payer to check they have correctly calculated the tax relief available, along with HMRC guidance on technical areas and reliefs available to them, and gives the tax payer 30 days to respond. If the tax payer does not respond then the next step may be a tax enquiry, and the issuing of a discovery assessment by HMRC.

It has been advised that any landlord who receives a letter should reach out to their accountants immediately so please do contact us if you receive one of these. Also, for any landlords who transferred their properties to a company since 2017/18 should take steps to review their financial statements to ensure they correctly reported any capital gains tax.