Mortgage application

[a.gulzar@btinternet.]

HMIT have made enquiries into a tax return for 2003. During the year a house was purchased . HMIT wants to see the application form used to purchase the house. is this reasonable request.
Can HMIT be challenged on this request.

[King_Maker]

You can certainly challenge it - whether the Commissioners/High Court will agree with you is another matter.

I would suspect that the Inspector wants to satisfy himself/herself that your income, deposit and ability to service the mortgage can be reconciled against the Tax Returns you have submitted.

[pallet]

Did you keep this form if not show the inspector the conpletion doc and mortgage offer this will show how much you paid deposit and how much a month you pay.This should help him reconcile your tax return.If you have cheated on you application form it between you and your lender.It sounds to me the inspector is fishing only give what you have to and always ask why

[wamstax]

I just happened to notice this and you will either have been very lucky or discovered that sometimes HMRC have more information than you realise. Re last comment I would take the cheating comment in another way -"if you cheated your lender by overdeclaring your income isn't it likely that you have also cheated HMRC by understating your income and where do you stop?" It is quite possible that HMRC know that cheating on your application took place. Therefore if you know you did and it comes out by enquiry rather than early disclosure the HMRC would clearly even with an open mind have to ask themselves who you cheated. Also if you managed to fund a loan given how did you manage it if you "overstated" your income for mortgage purposes. There are of course many avenues for HMRC to get information if they "know" that it exists either voluntarily or formally.

There are of course many other aspects to enquiries and sometimes HMRC ask for information that is perfectly reasonable provided they have prepared the ground for enquiry properly and can show the request to be proportionate and reasonable in relation to errors in business records. As usual http://www.wamstaxltd.com will give you further to consider and further advice is only a phone call away.

[pallet]

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