The taxman’s “intelligence unit” is targeting the country’s private sector landlords in a new initiative using powers given to them nearly 40 years ago.

The Taxes Management Act 1970 gave HM Revenue & Customs the power to gather information on the taxable income of UK landlords … going back three years for any single enquiry.

Landlords in Lancashire were among the first to receiving warnings about a fresh batch of Section 19 notices that will be issued next month.

“This will affect landlords, letting agents and could also involve tenants too,” says Lee Dribben, chairman of the Residential Landlords Association - whose members own over 100,000 private rented properties throughout the UK.

“We don’t yet know how widespread this activity will become but landlords should seek professional advice before offering any information.”