HMRC Announce Tax Purge on Landlords

HM Revenue and Customs (HMRC) are to launch a nationwide campaign to recover an estimated £2.5 billion in tax being evaded by private sector landlords.

Although the average tax per rented property is not significant, the total hole in the tax take is such that HMRC have decided, after successful local initiatives, to proceed with a national campaign.

They are intending to work with a variety of bodies over the next few months ‘to develop tools and guidance to support landlords of all types and help them get their affairs up to date’, and are inviting landlords whose tax returns are not complete to come forward voluntarily.

Taxpayers who have undisclosed tax liabilities that are subsequently detected by HMRC face higher penalties and, potentially, criminal prosecution.

HMRC’s press release on the initiative states that ‘HMRC will use information it holds about property rental in the UK and abroad, along with information already held on HMRC’s digital intelligence system, Connect, to identify people who have not paid what they owe’.

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