The Let Property Campaign provides landlords who have undeclared income from residential property lettings in the UK or abroad 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.
The campaign was launched in September 2013 and does not currently have an end date. Landlords who do not avail of the opportunity and are targeted by HMRC can face penalties of up to 100% of the tax due together with possible criminal prosecution. HMRC’s guidance on the scope of the campaign has been updated. The campaign is an opportunity open to all residential property landlords with undisclosed taxes. The campaign is not suitable for those letting out non-residential properties.
How Will Disclosing To HMRC Benefit You?
Taxpayers that come forward will benefit from better terms and lower penalties for making a disclosure. Landlords that make an accurate voluntary disclosure are likely to face a maximum penalty of 0%, 10% or 20% depending on their circumstances. These penalties are in addition to the tax and any interest due. There are higher penalties for offshore liabilities.
There are three main stages to taking part in the campaign, notifying HMRC that you wish to take part, preparing an actual disclosure and making 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.
Source: Informanagement