Fincas and Country property - Málaga Property

News - June 2007

Tax deadline is on the horizon

For those people who own a property abroad, a recent article in the OPP Magazine makes for a nervous few months. Whether you own a property in Spain, have a bank account or any substantial assets in a foreign country, time is running out for making your peace with Her Majesty’s Revenue & Customs.

For many years HMRC have been concerned over the number of British domiciled residents who have assets abroad which are escaping their clutches. This has resulted in a massive loss to the UK economy and Government coffers.

Currently, there is an amnesty that allows everyone with assets abroad to declare any non-payment in relation to VAT, income tax, corporation tax and inheritance tax. This amnesty, it is hoped, will encourage those people who have been avoiding tax, to come forward voluntarily to discuss a way forward.

Those people who choose to ignore this amnesty will be targeted by HMRC in the coming months.

The key dates are the 22nd June whereby taxpayers need to notify HMRC that they intend to disclose information. By the 26th November 2007 taxpayers will need to quantify the disclosure and then the final date is 30th April 2008 where the HMRC will make a final decision on acceptance of the disclosure.

Don’t forget that many people who own a property in Spain, who do not get interest from their bank accounts and do not get rental income from a property will not have anything to pay.