HMRC has a Let Property Campaign to encourage landlords who have not declared all their taxable income and gains to come forward and bring their tax affairs up to date. HMRC has recently published Let Property Campaign: examples of tax errors landlords make
Our June news item gives details of HMRC’s current campaigns. The Let Property Campaign is aimed at individual landlords letting out residential property in the UK or abroad.
The information in Let Property Campaign: examples of tax errors landlords make sets out 10 short case studies. These are common situations where people may not even realise that they have to declare anything for tax purposes, or where they think there taxable income is nil. For example: letting out an inherited property; collecting rent from flatmates in a student flat; letting out property where the rent covers the mortgage payments, but the taxpayer does realise that only the interest element of the payment is deductible.
The case studies will not tell tax advisers anything they do not already know on the tax front, but – given that these are situations HMRC is encountering in practice – they may provide some useful ideas on things to ask your clients about.