HMRC is cracking down on wealthy tax cheats who own overseas property as another strand of its campaign to recover unpaid taxes is launched. One of the first groups being targeted is wealthy individuals who own land and property abroad and people who hold offshore accounts.
A new 200-strong team of investigators and specialists called the ‘HMRC Affluent Team’ has already started work, scrutinising advertisements placed by second home owners in magazines and across the internet. They are looking for undeclared holiday rents and leased office space. This team is part of a HMRC campaign against tax evasion by the 330,000 richest individuals in the 50 percent tax bracket i.e. those that earn £150,000 plus per year.
David Gauke, the Exchequer Secretary to the Treasury, said: “The message is clear: there is no hiding place for tax cheats. The Government is committed to tackling tax evasion. That is why we have allocated HMRC £917m to reduce the tax gap over the next four years in the last Spending Review. This new team is part of that investment.”
Many of our clients use overseas property and offshore accounts as part of their legitimate tax planning strategy, but taxes involving overseas properties and holiday homes can be potentially complicated.
If you’re unsure of your tax position on your holiday home then read our guide to the tax rules on furnished holiday homes, or contact me for a free tax review on 0845 365 1000 or via email at email@example.com