HMRC Let Property Campaign
Here is the backstory:
My Wife and I own a property and have been renting it out since December 2011. We decided to go fully managed through an agent since we both worked full time jobs and were with 2 young children. At the time, we were given some bad advice about the tax situation, in that the capital part of the mortgage payments every month would eliminate any tax liability. And so we went on naively like this until I had that "oh no" moment.
So looking into it, HMRC can recover a lot of money if they find out themselves, so I made an unprompted disclosure and I'm trying to tidy everything up to send the form in.
Here are my two questions if anyone can help:
Am I right in saying my wife and I can jointly use our tax-free allowances and then basic tax band 50/50 since we own the house jointly? Or is it a single person does the whole thing?
When I make my disclosure, is getting bad advice a "reasonable excuse" or not? If it is I only have to go back 3 tax years/ If it isn't I have to probably go back to 2011-2012
Thank you all
Want to read more?
This is a members only forum, if you want to read more you need to login to your membership, if you are not a member, click here to join.