In recent years, the UK tax authority, HM Revenue & Customs (HMRC), has been using a new property portal to investigate potential tax evasion. The portal, which was launched in April 2019, allows HMRC to access data from a variety of sources, including estate agents and local authorities, to identify properties that may be subject to tax avoidance. Now, a leading lawyer has warned that HMRC could use the portal to increase the number of investigations into potential tax avoidance.
The lawyer, who works for a leading law firm in the UK, has said that the portal could be used to identify properties that have been undervalued for tax purposes. This could lead to HMRC launching investigations into the owners of those properties and potentially recovering unpaid taxes. The lawyer also warned that HMRC could use the portal to identify properties that have been sold without being declared to the tax authority. This could lead to HMRC launching investigations into the buyers of those properties and potentially recovering unpaid taxes.
The lawyer also warned that HMRC could use the portal to identify properties that have been transferred between family members without being declared to the tax authority. This could lead to HMRC launching investigations into the family members involved and potentially recovering unpaid taxes.
The lawyer concluded by saying that HMRC could use the portal to identify properties that have been acquired through offshore companies or trusts without being declared to the tax authority. This could lead to HMRC launching investigations into the owners of those properties and potentially recovering unpaid taxes.
The lawyer’s warning highlights the need for taxpayers to be aware of their obligations when it comes to declaring their property transactions to HMRC. It is important for taxpayers to ensure that they declare all property transactions accurately and on time in order to avoid any potential investigations by HMRC. Taxpayers should also ensure that they keep accurate records of their property transactions in case they are ever subject to an investigation by HMRC.