A tax consultancy has claimed that landlords who transferred their rental properties in a company in 2017/18 are being targeted by HMRC.

The consultancy firm, Blick Rothenberg, says that this is the Revenue’s latest campaign to ensure all tax liabilities are correctly reported.

Heather Powell, a partner and head of property and construction, at Blick Rothenberg, said: “Landlords who incorporated their property business but have not reported a capital gain on their 2017/18 self-assessment tax return are being sent a ‘nudge letter’. Incorporating a property business is an integral element of many of the schemes marketed to landlords significantly impacted by the restriction of interest when calculating the income tax payable on rents received from properties held personally.”

Blick Rothenberg says the nudge letters ask the tax payer to check they have correctly calculated the tax relief available to them, gives references to specific HMRC Guidance on technical areas and reliefs available, and gives the tax payer 30 days to reply. If the tax payer does not reply, the next step may be a tax enquiry, and the issuing of a discovery assessment by HMRC. Any landlord who receives a nudge letter should reach out to their tax advisors immediately.