The Let Property Campaign is designed to encourage residential property landlords to come forward and voluntarily disclose any undeclared rental income to HM Revenue & Customs (HMRC).
Although the campaign will be directed at all residential landlords, HMRC is particularly focusing on:
- Landlords who let to students/groups of workers.
- Landlords who let out holiday accommodation.
- Landlords who let out properties for multiple occupancy.
HMRC estimates that up to 1.5 million landlords may be underpaying £500 million in tax every year. In a departure from previous campaigns and in recognition of the sheer scale of the potential numbers involved, HMRC intends to run the campaign for at least 18 months.
Marian Wilson, Head of HMRC Campaigns, said:
‘All rent from letting out a residential property or holiday home has to be declared for income tax purposes. Telling us is simple and straightforward.
‘We appreciate some people will have made honest mistakes, and some may not be fully aware that the rent from a property is taxable, and that is why it always makes sense to talk to us so we can help. It is cheaper to come forward voluntarily and pay the tax you owe, rather than wait for HMRC to come calling.
‘Telling HMRC about your tax liabilities is simple and straightforward, and help, advice and support are always available. The message for all landlords owing tax is simple – it is better to come to us before we come to you.’
Help is available for landlords by calling HMRC’s Let Property Campaign Hotline on 03000 514 479 between 9am and 5pm, Monday to Friday. HMRC also intends to work with a variety of bodies over the next few months to develop tools and guidance, to enable landlords to bring their tax affairs up to date.
The Let Property Campaign follows hard on the heels of the Property Sales Campaign, which is directed at people who may have sold residential property, in the UK or abroad, that was not their main home. Such property disposals are potentially liable to Capital Gains Tax. The opportunity to voluntarily disclose any undeclared property disposal proceeds closed on 6 September 2013 for the Property Sales Campaign.
The HMRC press release can be viewed here http://abytx.co/1bt3LWc
Author: Guy Smith, Senior Tax Consultant on the ReSource Tax & VAT Consultancy Team.
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