SCOTTISH landlords who avoid paying tax will be targeted in a crackdown by HM Revenue and Customs.

A dedicated taskforce has been set up to pinpoint those property owners who have failed to pay the correct amount of tax on rent or on the sale of a rental property.

Danny Alexander, Chief Secretary to the Treasury, warned landlords who avoid paying tax face a heavy fine or criminal prosecution.

He said: "It is not right that some landlords in Scotland have chosen to deliberately evade the taxes they should be paying. This is not fair on honest businesses and HMRC will come down hard on those who have chosen to break the rules."

Neil Whyte, tax partner with accounts and business advisers PKF, said cities that had seen an explosion in the number of buy-to-let landlords, such as Glasgow and Edinburgh, were likely to be the focus of the investigation.

He said: "This is a further sign that HMRC is extending its reach to cover more and more people who may have avoided tax in the past. Some landlords, in particular, have often felt that their income from rentals and from property sales will be difficult for the taxman to track down."