Landlord tax evasion

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    Landlord tax evasion

    I know a couple of people who I don't think declare rental income for tax purposes. I know that one of these has a consent to let for unlimited time, and not an official buy to let mortgage. Is that a reason why the so called hunter system may not be catching them? Could it also be that he lives (with family) in a different council area than the flat he lets? I'm just wondering how he hasn't got caught.

    The Hunter System kicks in only when the lender through its underwriting processes for a new purchase or remortgage discovers irregularities and as a result rejects the application and places other lenders on alert that the individual(s) have made fraudulent declarations/ produced false documentation in an attempt to procure finance or where their activities are reported to the lender. Even if the Hotline is used in reporting tax evasion to HMRC will not trigger a registration on the Hunter System.
    Anyone who fails to disclose rental income on their Self Assessment will fall at the first hurdle with their lender since they will have an impossible job explaining why they have let a property with the consent of the current lender but have failed to disclose rental income on their tax returns.For such people I have not a shred of pity with what follows.


      Surely it is duty of all loyal British citizens to alert the authorities to any tax (or benefit) cheats...or any other crook or cheat. Stone me, if I'm paying tax - I want others to pull their weight also.

      I'd certainly grass these little un-patriotic disloyal little cheats up if I knew them: Indeed, I did just that re. a tenant subletting and getting shed-loads of undeclared rent income - and I know HMRC took action.

      £5 says these sh*ts are fiddling elsewhere also - eg no landlord insurance, not bothering with EPC of GSC or safe electrics: Not the sort we want as landlords if so!

      Best regards to all!
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...


        Hi theartfullodger
        I share your views 100% , as an individual and as a broker I have total disdain for anyone who thinks they can circumvent the system both legal and tax, and don't take me down the benefits route as I have seen too many abusers of the system to make me feel comfortable.

        As someone with a broking business and property I would never try to undertake such tactics as I fully understand and accept what the ramifications are and indeed if I whereto find someone who was abusing the system I would definitely go to any lengths to report the abuse including bringing the matter to the attention of the mortgage provider or HMRC. If we all paid what was legitimately due just maybe the state coffers would be better than they presently are.


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        • Reply to Selling part share
          by AndrewDod
          Well if CGT was not payable on the first slice it won't be on the second.

          I don't see that you retained a benefit, but I can't find any case law to that effect. But if rent was payable it would have gone in both directions (you would have paid your son half the rent and he would have paid...
          31-03-2020, 18:19 PM
        • Selling part share
          by Bill31
          5 years ago i gifted part of my property to my son as joint tenants. We lived in the property together. So its possibly a grob.

          Now we want to go our separate ways. Could he buy my share out so he owns the whole house. And i use the money to buy elsewhere. Could this introduce a IHT or...
          31-03-2020, 13:41 PM
        • Reply to Selling part share
          by Bill31
          Interesting that it may not be a grob as we own it all together. But surely hmrc will view it as i retained a benefit.

          Its our only main property i dnt think any cgt will be due. I was asking will cgt be due if i make another gift or sell my share to get my name of deeds?
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          31-03-2020, 17:35 PM
        • Reply to Selling part share
          by AndrewDod
          Although they were BOTH living there and both owned it -- so the share gifted is probably not a GROB. It would be if only the OP was living there (owning only a portion) and not paying rent.

          It depends on the proportion - if the OP owned 1% and paid no rent - I think it would be in GROB...
          31-03-2020, 17:09 PM
        • Reply to Selling part share
          by Bill31
          Ok thanks.
          So as i already did a gift of the property a few years back. Do i have to to pay cgt on the rest of the property when i gift it over or sell it to son as cash?...
          31-03-2020, 16:33 PM
        • Reply to Selling part share
          by jpkeates
          If you gift someone a property (or part of one) and carry on living there, the gift has reservations.
          So you either need to move out or start paying market rate rent to live there to end that situation.

          Any transaction done at an undervalue is treated by HMRC as being at market value,...
          31-03-2020, 15:52 PM
        • Reply to Selling part share
          by Bill31
          Grob meaning gift with reservation.

          What if the purchase is below market value. The share is worth a market value of 250k but i can only afford to pay 200k. How will hmrc view it?

          In another view i already made a gift of the property to him as joint tenant, how is the best...
          31-03-2020, 15:11 PM
        • Reply to Selling part share
          by jpkeates
          I don't know what a grob is in this context.

          It was a gift with reservation, so, unless you are paying rent, the property is still in your estate for IHT purposes.

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          31-03-2020, 14:52 PM
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