09 Jun Let property campaign
HMRC’s 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.
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.
A revised version of the 'let property campaign notification' form (D01) has been published by HMRC. A notification that you wish to partake in the campaign can be made by completing and submitting the form online or by completing a form on-screen and then either emailing or posting it to HMRC.
Landlords that make an accurate voluntary disclosure are likely to face a maximum penalty of 0%, 10% or 20% depending on the circumstance on top of the tax and interest due. There are higher penalties for offshore liabilities. There is currently no end date for the campaign. However, 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. It is not possible to benefit from the terms of the disclosure once an investigation has been commenced by HMRC.