HMRC have written to the tenants of overseas companies which own UK properties reminding them of their obligation as a tenant to deduct tax.
It is common knowledge that HMRC are looking more closely at those with offshore connections. HMRC have successfully collected over £500,000 for the first time from people with such interests. At the same time HMRC are also looking at those outside the UK with UK property interests.
In the past HMRC have targeted the overseas landlords themselves but letters are now being sent to the tenants.
Commenting on the letters, Nicola Goldsmith, Private Client Director at Gabelle, said “These letters will come as a surprise to many tenants as most tenants will be unaware of their obligations to withhold tax in certain circumstances and pay it over to HMRC. The threat of a penalty for errors in providing information will also alarm tenants. It is clear that HMRC are using the resources available to them via the Connect database.”
For further information, please contact the TaxDesk on 0845 4900 509 and ask for Nicola Goldsmith.