We understand that HMRC is seeking to extend its powers to collect more information from letting agents. Currently it can ask them to disclose landlords from whom they currently collect rent. It seems that HMRC want to ask for details from agencies that have just introduced a tenant to a landlord for a fee in the past.

I cannot but feel that will mean a lot of work for the agencies for a minimal return, as HMRC seem to be too busy to do anything sensible with the information they obtain.

Cathy Corns is a tax adviser and a partner at Mercer & Hole. The views given in this blog are personal to the author.

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Apparently MPs are considering offering buy-to-let landlords the chance to make up for evading taxes by paying in full during an amnesty rather than facing financial penalties or legal action from the Revenue. If this were to happen, the amnesty would coincide with an information campaign, explaining to by-to-let landlords why paying taxes is crucial and outlining the consequences they face if they fail to submit a complete return.

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The good news is that for expenditure incurred on or after 1 April 2008, for companies, and 6 April 2008 for sole traders, partnerships and some landlords, plant and machinery allowances are extended to cover expenditure on the addition of thermal insulation to all existing buildings used for trading purposes or let as commercial property.

Residential property businesses may instead qualify for the £1,500 per dwelling-house, landlord’s energy saving allowance to cover cavity wall, loft, solid wall, hot water system, draft proofing and floor insulation.

The allowance on insulation is restricted to the 10% rate but it is better than nothing.
 

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