The latest ruse catching out landlords is a tax avoidance scheme being marketed to rental property owners, which advises them to transfer their property business to a company using a limited liability partnership (LLP) as a conduit, to save capital gains tax (CGT).

‘This scheme does not work,’ said HMRC. ‘People who use this scheme may have to pay more than just the tax they tried to avoid as well as paying interest, penalties and fees for using such schemes.’

The landlord scheme is being sold as a way of potentially reducing three taxes, including CGT, inheritance tax (IHT) and stamp duty land tax (SDLT).