Another Clampdown On UK PRS Landlords By HMRC
HMRC has turned its attention to the housing and property rental market with the intention of targeting landlords, again.
The taxman thinks that there are a number of UK private rented sector (PRS) landlords who have yet to declare any income earned from renting properties to tenants, and they are going all out to find them.
The latest clampdown on private rented sector landlords by HMRC is intended to target those landlords allegedly not paying tax and the taxman is using information provided by all UK local authorities to track rental properties.
Letting agents and landlords have already started receiving letters from HMRC requesting information on long-term and holiday rental property addresses, letting periods, tenant numbers and rental income.London, East Anglia and South Wales appear to be HMRC’s favourite targets although many letting agents working on behalf of landlords in the North West and North East have also received letters of notification asking for landlords properties and details of letting histories.
Landlords are reporting that they have received specific requests asking whether properties were purchased with a mortgage, or if the properties were a gift or inheritance from a family member or partner.
The latest clampdown is part of the Government’s so-called Let Property Campaign and follows a series of well-publicised clampdowns by HMRC in recent years as they try to ensure that they get a slice of any financial action happening in the UK private rented sector.
The Government are also running a publicity campaign as part of the Let Property Campaign (LPC) to encourage landlords who may owe tax that hasn’t been declared to contact HMRC.
The scope of the HMRC remit is to target landlords using Rent-A-Room schemes earning above the £4,250 tax-free limit as well as landlords with multiple rental properties and specialist landlords in the student sector.
The LPC does not apply to companies or trusts renting out property without having declared income to the taxman.
Further details on the Let Property Campaign can be viewed here www.gov.uk/let-property-campaign
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