HMRC landlord tax loophole crackdown as Britons warned avoidance schemes 'do not work'
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HM Revenue and Customs (HMRC) has launched a crackdown on buy‑to‑let investors using limited liability partnerships to reduce their tax bills.
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The tax authority issued guidance stating that schemes designed to bypass mortgage‑interest relief restrictions and minimise property‑income tax liabilities do not operate as claimed.Landlords who have entered into these arrangements could now face fines, interest charges and higher tax demands.HMRC said it will apply anti‑avoidance rules to ensure rental income remains taxable in the hands of the original owner.
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TRENDING Stories Videos Your Say A spokesman said: "Our view is clear – these arrangements simply do not work and can leave users facing higher tax bills, interest and penalties."The schemes gained popularity after changes introduced by former chancellor George Osborne in 2015, which restricted mortgage‑interest tax relief for landlords to the basic rate.The policy increased tax liabilities for investors with larger property...
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