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In the first of a series of new-style interventions, HMRC have begun a campaign of compliance checks into property income, says Baker Tilly's George Bull.
The campaign targets people who receive income from property but have not disclosed it to HMRC.
HMRC have said that, where the taxpayer has authorised an agent to act for him, they will send the query to the agent, with a copy going to the taxpayer.
Where no reply is received, HMRC indicate that 'consideration will be given to further compliance action'.
Baker Tilly believes that the campaign may be part of a wider information-gathering exercise as HMRC state that 'the engagement will also provide an opportunity to inform HMRC about the potential for future capital gains tax liability'.
Recipients should not ignore these intervention letters, urges PKF, even if they have not made profits on their letting.
PKF's John Cassidy says: 'We have already seen HMRC use its powers to require banks to provide information regarding specific or unnamed/unknown taxpayers holding offshore bank accounts.
'Now they are becoming more active in using Government data from stamp duty land tax returns and other sources to pinpoint individuals who may be letting properties but do not declare rental income on their self assessment tax returns.
'While HMRC cannot be certain these individuals have made profits and there is no legal requirement to respond to such letters, ignoring such a letter may be counter productive. Once HMRC has identified a tax risk it is unlikely to let go until the issue is cleared up'.
