Whilst the London branch of the Revenue cracks down on the residents of Wimbledon who secretly let out their homes during the tennis fortnight, the Scottish Revenue is set to do the same with the residents of Edinburgh who rent out their homes during the famous festival.

Accounting Web Tax Zone says the tax authorities are well aware that many Edinburgh residents rent out their homes to tourists and performers during the festival, which runs from the end of July to the end of August. But some homeowners do not declare this income on their tax returns.

Last year as many as a quarter of a million visitors descended on the Scottish capital during the festival, and numbers are expected to be up this year. The Revenue is concerned that many thousands of pounds in tax is lost each year as residents keep their extra income secret.

The department will be keeping a close eye on properties being advertised as available for rent over the festival period. It will be snooping through magazines and Websites and mingling with festival crowds in an attempt to gather intelligence on which properties are being let out to festival goers and performers.

Some homeowners are understood to be raking in rents of as much as £2,000 a week. They move out and either stay with friends and family or take a holiday whilst the festival runs its course.

Although the Revenue can seek the co-operation of letting agencies in discovering which properties are let out, it is keen to discover the identities of homeowners who advertise privately.

Those caught not declaring the rental income on their tax returns face an investigation and a demand for back tax with penalties and interest.