If you let out a residential property but haven’t declared the rental income, you might be interested in a new campaign from HM Revenue & Customs (HMRC).
HMRC estimates landlords fail to pay £550m every year and their ‘Let Property Campaign’ aims to reclaim the lost income tax on undisclosed rental income.
The campaign targets residential landlords and alerts those who owe tax to get up to date with their tax affairs. It provides an opportunity for those individuals who have let out a property and have not disclosed income to bring their tax affairs up to date and get the best possible terms on the tax they may owe.
It’s aimed at those who have let a property either in the UK or abroad and includes individuals who are:
- renting out a single property
- renting out multiple properties
- a specialist landlord eg. student or workforce rentals
- renting out a room in their main home for more than the Rent a Room Scheme threshold (£7,500 per year)
- living abroad and renting out a property in the UK
- living in the UK and renting a property abroad
- renting out a holiday home even if they also use it
Landlords who report previously undisclosed taxes on rental income to HMRC under the Let Property Campaign will be given 90 days to calculate and pay what they owe and get the best possible terms.
The campaign doesn’t apply to a company or a trust renting out a property or those who are renting out commercial property.
For further information, or to find out if this campaign applies to you, please contact a tax specialist or visit the dedicated site https://letproperty.campaign.gov.uk/
HM Revenue and Customs and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen
If you’d like financial advice on your property portfolio, please get in touch.
Your property may be repossessed if you do not keep up repayments on your mortgage.