Let Property Campaign
Launched in September 2013, the Let Property Campaign (LPC) has seen an increasing trend of 10,000 landlords come forward to affirm previously undisclosed rental income to date. The campaign is intended at individuals who have not disclosed rental income received from their residential properties. This campaign cannot be used by companies owning rental property or by individuals renting out commercial properties.
In order to register an interest 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 conditions involved.
There is no deadline set to register for this campaign but, running in parallel, HMRC has set up a task force to have a crackdown on 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 caught.
HMRC are cracking down on undeclared property income or gains, and are concentrating on more resources on tax enquiries. Landlords who are besieged 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 likelihood of criminal prosecution.
It is not possible to make use of the campaign once HMRC has found irregularities at their own, so those affected should take swift action to bring their affairs up to date and settle any undeclared obligations.