Let Property Campaign
Launched in September 2013, the Let Property Campaign (LPC) has seen upwards of 10,000 landlords come forward to declare previously undisclosed rental income to date. The campaign is aimed at individuals who have not declared rental income received from their residential properties. It cannot be used by companies owning rental property or by individuals renting out commercial properties.
In order to register an intention to make a disclosure an online form needs to be completed or a call made. Individuals then have 90 days to make a full disclosure and pay the tax due. A full voluntary disclosure would typically see any penalty limited to 0-20% of lost revenue depending upon the circumstances involved.
There is no deadline set to register for this campaign but, running in parallel, HMRC has set up a task force to track down those who have not declared their rental income. HMRC has a number of tools at their disposal, including Land Registry records and authorised rental deposit scheme records. It is important to register a declaration to them before being tracked down.
HMRC are clamping down on undeclared property income or gains, and are focusing more resources on tax enquiries. Landlords who are targeted by HMRC under these measures, and have not made a disclosure, face a penalty of up to 100% of the tax due, together with the possibility of criminal prosecution.
It is not possible to make use of the campaign once HMRC has discovered irregularities, so those affected should take swift action to bring their affairs up to date and settle any undeclared liabilities.