Office politics are as bad as – some would say even worse than – the behaviour of the cowboys (and girls) in parliament.

I remember many years ago, long before the days of employee consultative committees, when the standard way to assess how the workforce would react to any intended change was to get a rumour started. If people reacted favourably, management would tut tut about how you can never keep anything secret, but admit that the rumour was true and implement the new policy. If there was an outcry, however, the rumour would be hotly denied, someone would be reprimanded for spreading malicious gossip, and the plan would be quietly shelved.

Ring any bells?

Just recently it was announced in a number of daily papers that the Inland Revenue (HMRC) had a list of 80,000 buy-to-let investors who, they claimed, were not declaring their income from lettings. The Revenue, not surprisingly, denied this report most vehemently, adding as an aside that although they do routinely carry out a number of investigations every year – it’s a standard part of their role – no specific body of people was being targeted.

Do you know what? I believe them. But that's not my point.

If more than one paper carries the same story simultaneously, they must have got it from somewhere. It probably did come from HMRC. It probably was never intended to be implemented that specifically, so the official denial was truthful. But the outcome, as honestly intended but deviously executed, is that BTL investors who, for whatever reason, have omitted to declare income from lettings or, more likely, Capital Gains on disposal of investment property, are now talking to their accountant and telling all.

If you have not yet declared your income from lettings, you may be surprised at how little Income Tax (if any) you have to pay. For a general discussion of Income Tax and Capital Gains Tax for Buy-to-Let investors, particularly the allowances you are allowed to claim, please click to take a look at the archived issues of VIewpoint numbers 4, 5, and 6 at http://www.viceroyinvest.co.uk/eZineArchive.html

www.viceroyinvest.com

Other Stories...

eZine
News Snippets... Watch This Space
Market Rates
Your Friend the Tax Man
BARBIE – not just another acronym
Great New Deals in Overseas Lending