Rental income under investigation

[colinton]

Recently receive compliance check on rental incomegoing back 6 years. The property is in join names did not declared on tax return as my partner is handling & receiving the rent from the property. Not sure how to approach the tax require and what to do, any suggestion do I see an accountant. 3 years back we paid off the mortgage and in the future can we re-mortgage?

Thanks

[scottie2]

Hi colinton. We would need more information before detailed advice can be given. For example, has your partner declared their share of the rental income? You will need to compile all of the relevant paperwork, for example, details of rents received and the expenses incurred, including the mortgage payments [interest only] Have you retained all of the paperwork going back six years? If you have not, it would be possible to reconstruct the position, but this will depend on what records you have kept. Also, have you any idea of whether you have made a profit from letting the property?

I would suggest that you speak to someone who is experienced in making managed disclosures to HMRC as clearly income has not been disclosed for a number of years. HMRC may also ask about how you funded the property in the first place and from what source(s) the mortgage has been paid off-hence the need for professional assistance. If you need more advice, get in touch at manoj.anand@wlhtax.co.uk Regards.