The Let Property Campaign provides landlords with an opportunity to regularise their affairs by disclosing any outstanding liabilities whether due to misunderstanding the tax rules or because of deliberate tax evasion. Participation in the campaign is open to all residential property landlords with undisclosed taxes. The campaign is not suitable for those letting out non-residential properties.
Landlords who do not make a voluntary disclosure, and are targeted by HMRC can face penalties of up to 100% of the tax for UK gains and 200% for offshore liabilities together with a possible criminal investigation.
Taxpayers that come forward will benefit from better terms and lower penalties for making a disclosure. Landlords that make an accurate voluntary disclosure and have taken ‘reasonable care’ are likely to face the lowest penalties. There are higher penalties where you did not take reasonable care if you deliberately misled HMRC regarding offshore liabilities.
There are three main stages to taking part in the campaign;
- Notify HMRC that you wish to take part
- Prepare an actual disclosure
- Make a formal offer together with payment.
The campaign is open to all individual landlords renting out residential property. That includes landlords with multiple properties and single rentals as well as specialist landlords with student or workforce rentals.
If you’re a landlord and need to file a self assessment tax return for your rental income, call MJB Avanti (08000) 388 799 to discuss your tax return requirements.