Question:
I am non-UK resident. I bought a flat in 2013 jointly with my husband and declared it on my self-assessment tax return, and no tax was payable. But I also have two other properties let since 2006, and did not declare the rental income as we thought that non-residents did not have to pay income tax. Now we have decided to declare by telling HMRC. We understand that the penalty would be up to 100% of the tax due. Do we have to pay any additional fine?
Arthur Weller replies:
I think that you should look at www.gov.uk/government/publications/let-property-campaign-your-guide-to-making-a-disclosure. You may find that the penalties are less than you imagined. There is also a helpline (0300 123 0998). Furthermore, if you are not UK resident, it may be that your total UK source income is less than your UK personal allowance (if you are eligible for the personal allowance), in which case you may have no UK tax liability at all. It is worth asking a tax adviser, or HMRC.
