The HMRC will be looking at homes that are either rented out or used as a holiday home and even property that is left to a relative or friend as a gift.
(PRWEB UK) 15 May 2013
Property tax experts at Colordarcy highlight that UK property investors could be met with a nasty shock when they open their brown envelope and find they have left it too late to declare any profits made from second homes and overseas investment property. This is according to information on the HMRC website.
The HMRC have made it known that they are likely to be taking a very keen interest in people who invest in a second home or who use the property as an investment – whether that property happens to be in the UK or overseas.
Loxley McKenzie Managing Director of Colordarcy commented, “The HMRC will be looking at homes that are either rented out or used as a holiday home and even property that is left to a relative or friend as a gift.
Fortunately the HMRC is giving property investors the opportunity to escape the full punishment they are planning to dish out as long as any income is declared by the 9th August deadline."
Unfortunately for those investors who haven’t kept their finances up-to-date so far, this property tax amnesty might still mean they are asked to pay a lower penalty. This will be much less than the penalty that may await those who miss the September 6th payment deadline.
McKenzie added, “If property owners hold up their hands and decide to pay now rather than risk getting caught, they will just need to pay any tax due, plus interest and a penalty of 20% of the tax on top.
If the property owner is caught later, there could be a much harsher penalty of up to 100% to pay and, if a lot of money is involved, a criminal prosecution."
Colordarcy advises investors that if they would like to find out more about tax on overseas property investment or if they are confused about potential tax liabilities, their experts will be happy to provide advice on how tax rules apply in different countries.
Alternatively it is also worth visiting the HMRC website to keep up-to-date with any changes to tax on property investments in the UK and abroad.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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