Discover how the HMRC Let Property Campaign (LPC) helps UK landlords disclose undeclared rental income, reduce penalties, and bring their tax affairs up to date.
What Is the Let Property Campaign (LPC)?
If you’ve earned rental income from a property and haven’t reported it correctly to HMRC, you’re not alone. Many landlords make genuine mistakes, whether due to misunderstanding the tax rules, becoming an accidental landlord, or simply overlooking their reporting obligations.
The Let Property Campaign (LPC) is an HMRC initiative that allows landlords to voluntarily disclose previously undeclared rental income and correct their tax affairs before HMRC takes enforcement action.
Making a voluntary disclosure can often result in lower penalties than if HMRC discovers the issue first.
Who Can Use the Let Property Campaign?
The Let Property Campaign is available to landlords who need to correct errors relating to rental income that should have been reported to HMRC.
It may be suitable for:
- UK residential landlords
- Accidental landlords who rented out their former home
- Individuals letting inherited properties
- Owners of holiday lets and short-term rental accommodation
- Airbnb hosts and other short-term letting providers
- Non-resident landlords with UK rental income
- Individuals with overseas rental income that should have been reported under UK tax rules
Whether you own one rental property or a portfolio of properties, the campaign provides an opportunity to voluntarily put things right.
Why Should You Consider the Let Property Campaign?
Ignoring undeclared rental income can become costly over time. HMRC has extensive powers to investigate tax affairs and increasingly uses data to identify landlords who may not have reported their income correctly.
Making a voluntary disclosure through the Let Property Campaign can help you:
- Bring your tax affairs up to date
- Reduce potential penalties
- Demonstrate cooperation with HMRC
- Resolve historic tax issues before they become formal investigations
- Gain peace of mind knowing your affairs are compliant
If you’re unsure whether you’ve made an error, seeking tax professional advice early can make the process much simpler.
Do You Need to Make a Disclosure?
You may wish to consider the Let Property Campaign if you have:
- Not declared all of your rental income
- Understated rental profits
- Claimed expenses that were not allowable
- Failed to register for Self Assessment when required
- Received rental income from overseas property that should have been reported in the UK
- Discovered historic tax errors after selling a rental property
Even if the amounts involved seem relatively small, it’s generally better to address the issue before HMRC contacts you.
How Does HMRC Identify Undeclared Rental Income?
Many landlords assume HMRC won’t know about their rental income. However, HMRC receives and analyses information from a wide range of sources.
These may include:
- Property transaction records
- Letting agents
- Tenancy deposit protection schemes
- Mortgage lenders and financial institutions
- Online property platforms
- International information-sharing agreements where applicable
HMRC uses sophisticated data-matching technology to compare information from different sources, making it increasingly likely that undeclared rental income will be identified.
How the Let Property Campaign Works
The disclosure process is straightforward but requires accurate calculations and supporting information.
Step 1 – Notify HMRC
The first step is to tell HMRC that you intend to make a voluntary disclosure through the Let Property Campaign.
Step 2 – Prepare Your Disclosure
Once HMRC acknowledges your notification, you will normally have 90 days to:
- Calculate unpaid Income Tax
- Calculate statutory interest
- Assess any applicable penalties
- Prepare your disclosure
- Arrange payment or discuss payment options where appropriate
Ensuring these calculations are accurate is important, particularly if several tax years are involved.
Step 3 – HMRC Reviews Your Disclosure
HMRC will review the information provided and, if satisfied that your disclosure is complete, will normally confirm the settlement of your tax affairs.
Professional advice can help ensure your disclosure is accurate and minimise the risk of delays or additional enquiries.
What Penalties Could Apply?
The amount you may need to pay depends on your individual circumstances.
HMRC considers factors such as:
- Whether the error was careless or deliberate
- Whether your disclosure is voluntary
- How quickly you come forward
- The number of years involved
Your liability may include:
- Outstanding Income Tax
- Interest on late-paid tax
- Financial penalties
Where a disclosure is made voluntarily before HMRC opens an enquiry, penalties can often be lower than if HMRC discovers the issue first.
The Let Property Campaign for Accidental Landlords
Not every landlord sets out to become a property investor.
Many people become landlords because they:
- Move home but keep their previous property
- Inherit a house from a family member
- Temporarily work elsewhere and rent out their home
- Purchase a property for a relative
- Let a holiday home for additional income
In these situations, it’s easy to overlook tax reporting obligations.
The Let Property Campaign provides an opportunity to correct genuine mistakes before they become more serious.
Received an HMRC Nudge Letter?
If you’ve received a letter from HMRC suggesting that your rental income may not have been fully declared, don’t ignore it.
These “nudge letters” are sent when HMRC believes further checks may be needed based on information it already holds.
Before responding, it’s sensible to:
- Review your previous tax returns
- Check the rental income you’ve declared
- Confirm your allowable expenses
- Seek professional advice if you’re unsure
If errors are identified, the (LPC) may provide the appropriate route to correct them.
Airbnb and Short-Term Rental Income
Income from Airbnb and other short-term letting platforms is generally taxable.
This includes income earned through platforms such as:
- Airbnb
- Booking.com
- Vrbo
- Other holiday letting websites
Depending on your circumstances, you may need to consider:
- Income Tax
- National Insurance contributions (where applicable)
- Capital Gains Tax when the property is eventually sold
If you’ve not declared all of your rental income, voluntary disclosure may help reduce the consequences.
Overseas Landlords and UK Tax
If you live overseas but own property in the UK, you may still have UK tax obligations.
Many overseas landlords later discover that they:
- Never registered for Self Assessment
- Misunderstood the Non-Resident Landlord Scheme
- Didn’t report UK rental income correctly
Cross-border tax matters can be complex, particularly where Double Taxation Agreements apply. Seeking professional advice can help ensure your disclosure is accurate.
Selling a Rental Property?
Selling a rental property often prompts a review of previous tax records.
Common issues include:
- Rental income that was never declared
- Incorrect expense claims
- Capital Gains Tax reporting errors
- Missing reporting deadlines where applicable
Correcting historic issues before HMRC raises questions can often lead to a better outcome.
How Far Back Can HMRC Go?
The period HMRC can normally assess depends on the circumstances.
| Behaviour | Typical HMRC Time Limit |
| Reasonable care taken | Up to 4 years |
| Careless behaviour | Up to 6 years |
| Deliberate behaviour | Up to 20 years |
Every case is different, and the correct disclosure period will depend on your individual circumstances.
Frequently Asked Questions
1. What is the Let Property Campaign?
The LPC is an HMRC disclosure facility that enables landlords to voluntarily declare previously undeclared rental income and correct their tax affairs.
2. Can I use the Let Property Campaign if HMRC has already contacted me?
It depends on the circumstances. If HMRC has already opened a formal enquiry, the campaign may not be available. You should seek professional advice as soon as possible.
3. How long do I have to submit my disclosure?
After notifying HMRC, you will normally have 90 days to submit your full disclosure and arrange payment.
4. Is Airbnb income taxable in the UK?
Yes. Income from Airbnb and other short-term letting platforms is generally taxable and should be reported where required.
5. How far back can HMRC investigate rental income?
Depending on the circumstances, HMRC may normally assess up to 4, 6 or 20 years of tax.
Final Thoughts
The Let Property Campaign gives UK landlords the opportunity to put historic tax errors right before HMRC takes formal action. Acting early can help reduce penalties, avoid unnecessary stress, and ensure your tax affairs are fully up to date.
If you’re unsure whether you’ve declared all of your rental income correctly, seeking professional advice sooner rather than later can make the disclosure process much smoother.
Disclaimer: This article is for general information only and does not constitute tax advice. Tax rules may change, and the correct treatment depends on your individual circumstances. If you need advice about the Let Property Campaign or your UK tax obligations, please seek professional guidance.