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Question Title: Disclosure of landlord information
| Question: 337 |
| Can you advise me of any knowledge you have of the law where agents are required to disclose details about client landlords, their properties and the rents received. Is there any obligation to provide this information ? The position with regard to returns on behalf of overseas Landlords is well set out and understood. As you are doubtless aware over recent years the Inland Revenue has been turning its attention to agents overall business and demanding information in a format acceptable to them (otherwise you are treated as not submitting the information and fined!!). These demands are usually accompanied by a covering letter which originally, I think, quoted section 16 of some tax legislation which turned out to be incorrect. The latest letters now quote some authority under section 19. They also specifically point out that the Data Protection Act is not an defence against non-disclosure. I would be grateful for your opinions and feedback on the above.
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| There are at least two powers we are aware of that allow government departments to demand that agents disclose data relating to landlords and properties. These are: Local Government (Miscellaneous Provisions) Act 1976, s.16 Inland Revenue powers: Taxes Management Act) 1970, s.19. Under the Local Government (Misc. Provisions) Act, a local authority can serve upon a person a requisition for information requiring them to provide details (name and address) of a person having an interest in a particular premises whether as freeholder, agent, mortgagee, lessee or otherwise. The Inland Revenue powers are similar but even more effective. In order to help them track down individuals who are not properly declaring all their sources of income, they have special powers that enable them to ask an agent for details of all properties and the rents received on them. We have studied the statutory provisions and it appears that these powers are valid. We are aware of no cases where these powers have been challenged. Agents risk receiving a hefty fine if they do not comply, and we came across a case recently where an agent had been fined £3,700 for not filing tax returns relating to overseas landlords by the required date. Finally, it appears, as you point out, that agents cannot refuse to supply client data to the Inland Revenue on data protection grounds. There are specific exemptions to the Data Protection Act and one of these relates to supplying tax information to the Inland Revenue where such information is required by them in their role as tax collectors.
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References:
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Pages:
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Hyperlinks:
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Letting Handbook |
Chapters 14 & 17 |
letting-handbook-and-factsheets.html
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For more information, discuss on the Forum
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