HMRC Let Property Campaign
What Is The HMRC Let Property Campaign?
The HMRC Let Property Campaign is a facility that allows landlords to declare previously undeclared income from renting out property (letting income).
Who Can Make a Disclosure Under the Let Property Campaign?
You can make a disclosure under the ‘Let Property Campaign’ if you…
- Rent out a single property
- Rent out a portfolio of properties
- Are a specialist landlord, e.g. student lets or contractor accommodation providers
- Live abroad and rent out a property in the UK
- Live in the UK but rent out property overseas
- Rent out a property you live in part of the time e.g. a holiday home
Who Can’t Make a Disclosure Under The Let Property Campaign?
The let property campaign can’t be used if your renting property though a company or trust. It also can’t be used if you rent out commercial property.
Why has HMRC launched the Let Property Campaign?
HMRC has taken a particular interest over the last few years in residential landlords. Specifically, those who aren’t currently, or have never, declared income from renting out residential property.
This is partly because of the rule changes around being able to claim mortgage interest as an allowable expense for tax purposes. By 2020 landlords won’t be able to claim any interest on mortgage repayments. With this change alone, it could be argued that landlords are more likely than ever to try to avoid paying tax on rented properties.
Bad News For Landlords Whom Avoid Tax…
The tools used by HMRC in an attempt to catch landlords are more sophisticated than ever. HMRC now has a £1 billion ‘super computer’ that collects data from many different sources. These are sources such as land registry records for example.
It doesn’t take much imagination to see how the computer may come in useful. For example, it might see someone’s name listed against several properties. I might then forward the information to a HMRC case worker for further investigation.
What To Do Next
If you’re a landlord and have undeclared property income, then call us today. We’ll talk you through the various options (such as the ‘let property campaign’) and help to identify the best way forwards.
T M Sterling are experts in managing complex tax problems. We help clients across the UK to get their taxes back on track. If you have questions regarding the HMRC Let Property Campaign or any other tax related issue then please get in touch. Simply use the ‘Contact Us’ link at the top of our website – www.tmsterling.co.uk