Since 2013, HMRC have run the Let Property Campaign which has enabled us to successfully disclose historic rental income to HMRC on behalf of our clients.
This regime is available to:
- Those that have multiple properties
- Landlords with single rentals
- Specialist landlords with student or workforce rentals
- Holiday lettings
- Renting a room in our home to a lodger, for more than the Rent a Room scheme threshold
- Those who live abroad and rent out a property in the UK
Unfortunately, this scheme is not available to landlords letting out non-residential properties, such as a shop, garage or lock-up.
To encourage individuals to come forward voluntarily to disclose their rental profits (and pay the associated tax liabilities), there is a different penalty regime which typically provides reduced penalty rates. We have, for example, successfully applied a 0% penalty for some of our clients as their circumstances and behaviour allowed for this. Whilst this rate may not be available to everyone, it is certainly the ideal and we will work with our clients and HMRC to establish the best position possible. Our experience in this area also helps to make the process run as smoothly as possible and offer advice to guide you through the disclosure process.
Should this apply to any medical professionals and individuals who are part of the NHS pension scheme, our healthcare team are able to calculate the impact of amending your historic tax position and consider any additional tax liabilities arising due to NHS pension annual allowance charges. They are also able to review how the McCloud judgement will alter these calculations once it has been written into legislation. Our general personal tax compliance team can also assist with queries relating to other individuals who need to disclose their rental profits.