Renters quizzed in relation to their landlord’s tax affairs

HMRC is asking tenants about the tax status of their landlords. In a fact-finding letter the department goes on to suggest tenants may have to take tax off their rental payments to ensure the correct tax is paid if their landlord is not UK-resident and is not registered under the UK’s non-resident landlord scheme or face a fine. The CIOT is urging tenants not to ignore the letter and to seek advice if they need it.  

The letters are accompanied by a form which asks the tenants for information about the property such as whether it is owned by a trust and if so the date it was acquired along with details about the trustees settlors and beneficiaries. 

Brian Slater chair of the CIOT’s property taxes sub-committee said: ‘The letters are likely to confuse tenants when there is no letting agency contracted to...