BTL tax implications - scenario
Discussion
I have a question arising from a couple of scenarios some friends are in - so I would be interested in the potential outcomes.
Say I had a BTL property and didnt pay any tax on the earnings for a number of years. Now I come to sell it I feel obliged to inform the tax man I forgot to pay tax during the period (say past 5 years) and I would to pay it now.
What could I expect from the tax man in terms of penalties or other implications? What sort of fines / interest could / would be applied? The annual profit from the BTL was minimal (max £1200) per year. Would it make a difference if the 'profit' was £0?
Thanks
Say I had a BTL property and didnt pay any tax on the earnings for a number of years. Now I come to sell it I feel obliged to inform the tax man I forgot to pay tax during the period (say past 5 years) and I would to pay it now.
What could I expect from the tax man in terms of penalties or other implications? What sort of fines / interest could / would be applied? The annual profit from the BTL was minimal (max £1200) per year. Would it make a difference if the 'profit' was £0?
Thanks
TooMany2cvs said:
wainy said:
Say I had a BTL property and didnt pay any tax on the earnings for a number of years.
Did you do Self Assessment at all during that time?wainy said:
The annual profit from the BTL was minimal (max £1200) per year. Would it make a difference if the 'profit' was £0?
Yes, absolutely - because if there was no profit, there was no tax to pay.Even if there is no tax would you be liable for a fine for not filing self assessment?
BoRED S2upid said:
Is that correct? You don't have a property other than your BTL at the moment so can dodge CGT and the misses tax due on the profit that wasn't a profit as it was some how rented out and made nothing.
This should all be picked up when the CGT is calculated and they are both going to jail. Or maybe just a big headache and fines to pay.
Do let us know how it all pans out.
It will be interesting, they are in positions where it all needs to be above board ie take the fine and not hide anything as it would have ramifications on work if any 'convictions' so to speak (eg evasion)This should all be picked up when the CGT is calculated and they are both going to jail. Or maybe just a big headache and fines to pay.
Do let us know how it all pans out.
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