HMRC have recently launched a “One to Many” campaign writing a letter to property owners stating “Our records show you may have earned income from short-term property lettings and not told us about it. This means you may owe us tax.”
Recipients of the letter need to respond regardless of whether they have any income to disclose or not.
A “One to Many” approach is where HMRC send one standard message to many customers. The aim is to influence customers’ behaviour, so they are more likely to comply with their tax obligations. A One to Many approach is not a compliance check.
The Chartered Institute of Taxation provide guidance in respect of how to deal with such letters.
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Property Investment, by Satwaki Chanda, is a major work for serious property investors and their professional advisers. The text leads the reader through the cycle of property ownership, from acquisition to eventual disposal. At each stage, the complex tax issues are clearly explained and fully illustrated.