Insurance News Archive
Buy to let insurance policyholders warned not to hide profits
Posted by Michael Brown
An accountancy firm has cautioned buy to let insurance policyholders not to disguise their property sale profits for tax purposes.
UHY Hacker Young has warned that tax officials are increasingly searching Land Registry records to assure the accuracy of tax return details.
Under the Freedom of Information Act, accountants at the firm found that the tax office retrieved an additional 23 per cent in capital gains revenue within a recent two-year investigation.
A representative of HM Revenue and Customs said: "We risk assess returns using a variety of methods, as well as cross-matching database information, both our own and external."
The spokesperson added that enquiries into the disposal of second homes are just one area that officials inspect.
Last week, Ian Potter, operations manager from the Association of Residential Letting Agents, urged the government to ensure that buy to let insurance policyholders are not driven from the market by a rise in capital gains tax.
21 Jun 2010
