VRMA Administrator
HM Revenue & Customs has launched a crackdown on the UK short-term lettings market by initially targeting about 1,000 property owners that it suspects have not paid enough tax. Based on information received from online bookings platforms, the UK tax agency is sending its first “nudge” letters this month to those it believes have not declared income earned from rentals on their self-assessment tax returns. Recipients of the letters have been given 30 days to respond or risk a formal inquiry into their tax affairs. HMRC’s scrutiny comes as the holiday rentals market has grown rapidly in recent years, helped by the preferential tax treatment of short-term lettings compared with traditional buy-to-let rentals.
Financial Times (02/24/23) Mary McDougall
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