Date posted: 30th Jul 2025
The HMRC Let Property Campaign (LPC) is an opportunity for individual landlords who owe tax on rental income to come forward and bring their tax affairs up to date. Whether you’re a current landlord or have previously let out a property, this campaign offers a chance to make a voluntary disclosure and potentially reduce penalties for unpaid tax.
What Is the Let Property Campaign?
The Let Property Campaign is a long-running initiative from HM Revenue & Customs aimed at individual landlords who have not declared rental income from residential property. It applies to a wide range of landlords, including:
- Those who own a single rental property
- Multiple property landlords
- Specialist landlords (e.g., student or holiday lets)
- Those who let out a room in their home
- Individuals who live abroad and rent out UK property
- Accidental landlords who may have inherited a property or let their home temporarily
- Overseas landlords with UK rental income, who may not realise they have UK tax obligations
Why Take Part?
If you have undisclosed rental income, voluntarily disclosing through the Let Property Campaign can significantly reduce the penalties you may otherwise face. Key benefits include:
- Lower penalties: Typically much lower than if HMRC discovers the non-disclosure first.
- Time to pay: HMRC may allow you to spread payments over time.
- Peace of mind: Brings your tax affairs up to date and reduces the risk of further investigation.
Ignoring the campaign can lead to serious consequences, including higher penalties, interest, and even criminal prosecution in extreme cases.
How the Disclosure Process Works
- Notify HMRC: Inform them of your intention to make a disclosure through the LPC.
- Gather Information: Calculate the income, expenses, and tax due (usually up to the last 20 years, but typically less depending upon the reasons for non-declaration).
- Make a Disclosure: Submit full details of your rental income and tax owed via the Digital Disclosure Service.
- Pay What You Owe: Pay the full amount within 90 days of notification, or agree on a payment plan.
Common Reasons for Non-Disclosure
Many landlords fall into non-compliance without realising it. Common issues include:
- Renting out a property after moving in with a partner or family
- Letting out a former home without informing HMRC
- Inheriting a property and renting it out
- Mistaken belief that income below the personal allowance doesn’t need to be reported
- Believing that mortgage payments are deductible in full.
How We Can Help
Navigating the Let Property Campaign can be complex, especially when dealing with multiple years of income and expenses. Our experienced tax specialists can:
- Review your rental income history and identify any liabilities
- Prepare and submit your disclosure accurately
- Negotiate with HMRC to minimise penalties
- Assist with arranging time-to-pay agreements if needed
Whether you are unsure about your obligations or already know you need to disclose, we’re here to provide clear, confidential advice and support throughout the process.
Don’t Wait for HMRC to Contact You
HMRC uses advanced data-matching techniques and receives information from letting agents, local councils, and the Land Registry. If they contact you before you disclose, you could face significantly higher penalties and fewer options for negotiation.
Take control of the situation now by speaking with our expert team.
