If a landlord is found by HMRC to have undisclosed income from residential property lettings, then they could face penalties of up to 100% of the tax from UK properties and up to 200% for offshore liabilities as well as a criminal investigation that could lead to further penalties.

Landlords that come forward to HMRC about their undisclosed rental income will be presented with better terms and reduced penalties for their actions. The penalties and terms will be at their best if the landlord makes an accurate voluntary disclosure and have taken ‘reasonable care’. The penalties will worsen if reasonable care was not taken or if there was purposeful misleading of HMRC with relation to offshore lettings, however they will still be reduced.

Taking part in this campaign comes in three steps. The first step is to alert HMRC to the fact that you wish to take part in the campaign, the second step is to prepare an actual disclosure presenting all the details and the third step is to make a formal offer along with payment. This campaign is available for all UK tax paying landlords that rent out residential property. Encompassed within this is landlords with single and multiple property lettings as well as specialist landlords whose properties are let out to students or workers.