RLA News Service

Prime Minister Gordon Brown’s Labour government is expected to place a heavier focus on examining the tax returns of residential landlords in the United Kingdom, according to a report in The Guardian. HM Revenue and Customs intends to spend more time examining the tax returns and self-assessments of residential landlords, starting this year. One of the reasons for this new approach and interest in the tax files of buy-to-let property owners is that their number has expanded in the past year. A growing number of Britons have been “forced” into the buy-to-let market, due to the dismal state of housing sales and the difficulty of selling homes during a worldwide recession and when obtaining a mortgage is becoming increasingly difficult.

According to the most recent estimates, there are approximately 800,000 residential properties for rent in Britain and this number may continue to expand as the rental sector remains in better shape than housing sales. HM Revenue and Customs reminded Britons that the deadline for submitting their tax returns is fast approaching. This year’s deadline for online submissions is at the very end of January.

Tax specialists recommend that landlords include more information and detail than usual in their tax return, in order to decrease the chance that HM Revenue may investigate their business or assessment. It is, however, likely that a growing number of formal investigations will be launched, in order to verify the tax returns of residential landlords.

Thank you to The Guardian and Rentman for the initial reports.