Are you a landlord with undeclared rental income? The HMRC Let Property Campaign (LPC) gives landlords a valuable opportunity to correct past tax issues, reduce penalties, and avoid serious legal consequences. This guide explains who should disclose, how the LPC works, and why acting now is essential.
What Is The HMRC let Property Campaign?
The Let Property Campaign (LPC) is an HMRC disclosure facility that allows landlords to voluntarily declare unpaid tax on residential rental income earned in the UK or overseas.
Once you notify HMRC:
- You have 90 days to calculate and submit your disclosure.
- You can pay the tax due or arrange a Time to Pay plan.
- You usually face much lower penalties than if HMRC investigates you first.
Failing to disclose can result in higher fines, tax assessments going back up to 20 years, and possible criminal investigation.
Who Can Use the Let Property Campaign?
You can disclose under the LPC if you are an individual landlord with undeclared residential rental income, including if you:
- Own one or multiple rental properties.
- Rent out a room in your own home above the Rent a Room Scheme threshold.
- Let a holiday home.
- Earn income from student or workforce accommodation.
- Live abroad, or plan to live abroad, while renting out UK property
- Have inherited a property and now rent it out.
Disclosures can be made:
- As an individual
- By a tax agent on behalf of a client
- On behalf of a deceased person
Who Is Not Eligible for the Let Property Campaign?
The LPC does not apply to:
- Non-residential property income, such as:
- Shops
- Garages
- Lockups
- Rental income belonging to a company or a trust.
Why Disclose Rental Income to HMRC Now?
Disclosing under the Let Property Campaign offers landlords the best possible settlement terms available from HMRC, including:
- Penalties that can be as low as 0%
- Reduced interest charges
- No unexpected HMRC investigations
- The ability to spread payments if you cannot pay in one lump sum.
Waiting for HMRC to discover undeclared income often results in significantly higher penalties and stricter enforcement.
Can One Disclosure Cover More Than One Person?
No. Each disclosure must be made for one individual only.
For example, if a husband and wife both have undisclosed rental income, they must each submit separate disclosures, showing their respective share of the income. HMRC requires a separate notification for each person.
How Much Penalty Will Landlords Pay Under the LPC?
In many cases, landlords may not have to pay any penalty at all. Where a penalty does apply, it is often 0% or significantly lower than the penalty imposed if HMRC identifies the issue independently.
If you cannot afford to pay the full amount at once, HMRC may allow you to spread the payments through a Time to Pay arrangement.
How Many Years Must Be Disclosed Under the Let Property Campaign?
The number of years you need to disclose depends on your circumstances:
- If you were registered for self-assessment and made a careless mistake, HMRC usually limits disclosure to a maximum of 6 years.
- If HMRC later determines the behaviour was deliberate, they can assess up to 20 years or more.
Coming forward voluntarily makes it much easier to demonstrate that errors were unintentional and limit how far back HMRC can go.
Get Professional Help with Your Let Property Campaign Disclosure
If you are unsure whether the Let Property Campaign applies to you, or if you need assistance preparing your disclosure, professional advice can help you reduce penalties, ensure accuracy, and avoid HMRC challenges.
At GM Accountants & Tax Consultants Limited, we are already helping multiple landlords with their HMRC Let Property Campaign (LPC) disclosures. This guide is based on our real-world experience of working with landlords just like you.
📞 Contact us today for tailored advice and expert support with your Let Property Campaign disclosure.
Disclaimer:
The information provided in this blog is for general informational purposes only and does not constitute professional accounting or tax advice. As individual circumstances may vary, readers are advised to contact us directly for advice tailored to their specific financial or tax situation.
