The following case recently hit the accounting headlines proving how a little knowledge can be a dangerous thing.
HMRC wrote to husband and wife informing them they were aware of a property disposal that had not been reported. (Land Registry shares property information with HMRC).
The disposal and the rental income had not been declared on the couples tax returns on the basis of advice provided in writing by an ‘advisor’ but which had not been confirmed with a qualified tax advisor or accountant.
Not only did the couple have to pay tax on three years’ worth of rental income, but they also had to pay capital gains tax on the disposal when they were expecting this to be tax free!
The lesson is simple; seek full and proper tax advice from a qualified tax advisor or accountant on any substantial transactions you enter.
Proper advice pays! If you have anything you would like to discuss please call Lesley Sutton on 01484 550 037 or email firstname.lastname@example.org.