Property tax avoiders targeted by new HMRC taskforce
HM Revenue & Customs has established a taskforce to deal specifically with people trying to dodge property tax in the south west of England and in south Wales.
The taskforce will target those who have sold one or more properties and haven’t paid capital gains tax or disclosed rental income.
HMRC said it will use intelligence from the Valuation Office Agency in order to “track down the tax cheats” and that it expects to recover around £5m from the operation.
The Revenue said it has raised more than £190m as a result of taskforces launched since 2011/2012, with more than £12m recovered as a result of property rentals taskforce operating in London, south east England and Yorkshire, with more than 80 cases currently under criminal investigation.
It is anticipated that taskforces will bring in more than £100m during the 2014/2015 tax year.
HMRC’s Jennie Granger, director general of enforcement and compliance, said: “HMRC taskforces are deployed in sectors and areas where we’ve detected a high risk of tax evasion. For example, in a previous property taskforce in London in 2013 we uncovered a barrister who had evaded £471,512 in unreturned capital gains.
“The people being targeted by our taskforces have no intention of playing by the rules and could end up facing a heavy fine or even a criminal conviction.
“A Hertfordshire property consultant who failed to declare or pay capital gains tax and rental income on a number of properties was uncovered by an HMRC taskforce in 2013 and, as well as paying the tax and interest due, now has a criminal record.
“If you haven’t declared all your income, we will find you and investigate.”
