Tax man targets landlords

Her Majesty's Revenue and Customs are targetting landlords who fail to declare rental income from second homes with information from stamp duty property returns making it possible for them to match information from individuals' declared main residences.

It's believed that HMCR have launched a pilot exercise sending out letters to owners who have failed to declare rental income, with follow up action being considered on owners to fail to reply.

Many landlords believe that no tax is due if they have a mortgage, yet failure to declare rental income is an offence. In the current financial and political environment (given the state of the UKs public finances) it will come as no surprise if HMCR were to level substantial fines on landlords who fail to comply to the letter.

As we've said many times - if you are a landlord get specialist tax advice.