HMRC is having yet another of its frequent clampdowns on residential landlords, targeting those allegedly not paying tax by using local council information to track rental properties.
Reports from across the country suggest that landlords are receiving letters from HMRC requesting information on long-term and holiday rental property addresses, letting periods, tenant numbers and rental income. The areas of London, East Anglia and South Wales appear to be particular targets.
Some landlords are also receiving specific requests asking whether their properties were purchased with or without a mortgage, or whether they were a gift or inheritance from a family member or partner.
There has been a series of well-publicised clampdowns in recent years, with the latest forming part of the Government’s so-called Let Property Campaign.
Part of LPC is a publicity campaign to encourage landlords who believe they owe tax - but which has not yet been declared - to pro-actively contact HMRC.
The eligible landlords range from those running simple Rent-A-Room schemes (and earning above the £4,250 tax-free limit) to landlords with multiple properties or specialist landlords in, for example, the student sector.
The LPC does not apply to companies or trusts renting out property without having declared income to the taxman.
Details of the LPC are on www.gov.uk/let-property-campaign