The Government has stepped up investigations into tax avoidance on income from holiday homes abroad. Thousands of landlords could be caught out for not declaring income from these overseas properties.
Data from a Freedom of Information request has shown that tax on income from overseas rental properties has jumped by 17% due to crackdowns by HMRC. It is expected that this figure will rise in the coming tax years.
Tax officers are now monitoring foreign bank accounts and the social media of people they suspect of having overseas rental properties in order gather evidence. In the Summer of 2019, HMRC also sent out thousands of letters to people with overseas investments and bank accounts, asking them to make sure that their tax affairs were in order, even if they did not owe any tax.
If you need guidance with overseas properties and investments, please do not hesitate to contact Folkes Worton on 01384 376964
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