Overseas property investors reminded to declare rental income to taxmen
The UK's HM Revenue and Customs (HMRC) has reminded overseas property investors to declare earnings from any rental income before the department launches a drive to catch those who avoid paying their dues.
Holiday home owners have until June 22nd 2007 to inform tax officials of any income that has not been declared as taxable, after which date stringent penalties could be enforced - such as a fine equal to the value of their tax bill.
The Daily Mail reported that many property investors are unaware that they have to pay tax on rental income generated in other countries that is brought back into the UK, while others may be avoiding payment deliberately.
John Whiting, an expert from PricewaterhouseCoopers, told the newspaper: "This amnesty has not been well-publicised by the Revenue. It also applies to UK second-home buyers who have rented out the property and not declared the rent on the tax form."
Following the June deadline, foreign property owners who fail to inform HMRC of their rental income could find themselves subject to a "full-scale investigation into their tax affairs".
However, the government notes that holiday home owners can claim credit against their UK tax bill if they have already paid tax on their rental income overseas.
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