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Landlords: declare your tax now
The government has announced an unprecedented amnesty for taxpayers as it seeks to recover billions of pounds in unpaid tax. Up until 22 June 2007 penalties for failing to declare and pay tax will be capped at 10%.
Although the scheme is aimed at about 3m people with offshore bank accounts, all taxpayers can take advantage.
How will the amnesty work?
Landlords have until 22 June 2007 to register an intention with Revenue & Customs to declare any tax owed on previously undeclared rental income. You will still face penalties for failing to declare the income or gains you should have on time, but the maximum penalty will be capped at 10% of the tax you owe. Normally fines can be up to 100%.
There is no penalty if the income or gains you have failed to declare are less than £2,500, but you still need to disclose it and will have to pay the tax you owe plus interest, as usual.
How do I make a declaration?
Landlords should inform their local tax office that they wish to make a disclosure of previously undeclared rental income.
As long as you make a disclosure and payment within the deadlines you “can expect the same treatment” as offshore savers – in other words, the same reduced penalty.
What about making a payment?
You must make full payment of the tax owed, plus interest and penalties, by November 26 or the penalty may increase.
If you don’t expect to have the money in time you should call the Revenue on 0845 366 1202 as soon as possible.
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with a partnership built on trust and understanding of your individual
business needs, we are confident that you will maximise rental returns
by minimising your tax liabilities.
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In our experience property investors
are paying too much tax so contact us
for a personal, cost-effective and tax-deductible examination of
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- Cut through the complexity of the subject using our various sources
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|| When somebody dies make sure the deceased’s assets are valued on an as is basis’ which will give a lower probate value than an insurance new-for-old’ basis. The lower the total probate value of the deceased’s estate, the less inheritance tax is payable.
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