Let Property Campaign - HMRC Tax Disclosure Guide (2025)

The Let Property Campaign is a special initiative by HMRC aimed at landlords who have undisclosed rental income from residential properties. It provides a straightforward way for landlords to come forward voluntarily and declare any previously unreported rental income.

By participating in this campaign, landlords can pay the outstanding tax within a 90-day window and benefit from significantly reduced penalties compared to those faced if HMRC uncovers the income later. The campaign covers various rental situations, including single or multiple properties, holiday lets, and renting rooms above the Rent a Room Scheme threshold.

Who can use the Let Property Campaign (LPC)?

The Let Property Campaign (LPC) is an ongoing HMRC Let Property Campaign initiative designed for individual landlords who have undisclosed income from letting residential properties. The campaign allows landlords to voluntarily disclose previously undeclared rental income through the Let Property Campaign disclosure process and benefit from reduced penalties.

1. Individual landlords with undisclosed income from letting a single property or multiple residential properties.
2. Landlords renting out a room in their main home where the income exceeds the Rent a Room Scheme threshold.
3. Those with holiday lettings, even if the property is used personally part of the time.
4. Landlords living abroad who rent out UK residential properties and remain liable for UK tax.
5. UK residents renting out residential properties abroad.
6. Individuals who have inherited a residential property and are letting it out.

Who cannot apply for Let Property Campaign (LPC)?

1. Landlords letting non-residential properties, such as shops, garages, or commercial units.
2. Companies or trusts letting properties (the campaign is only for individuals).

How to make a Let Property Campaign disclosure?

To participate, landlords must notify HMRC by completing the Let Property Campaign disclosure online via the Digital Disclosure Service (DDS). After notification, HMRC issues a unique Disclosure Reference Number (DRN), and landlords have 90 days to submit a full disclosure and pay the tax owed. The Let Property Campaign form can be accessed online to start this process.

This letting property campaign offers landlords a clear path to regularise their tax affairs, avoid harsher penalties, and prevent possible criminal prosecution by coming forward voluntarily.

This content integrates your keywords naturally while providing a clear, authoritative explanation of eligibility and the disclosure process under the Let Property Campaign.

Other Liabilities you should include in your disclosure

As a condition of participating in the Let Property Campaign, you must disclose all income previously unreported to HMRC in your disclosure, in addition to the income from letting out property. This may include the following:

1. Earned income that has not been taxed prior to receiving, such as profits from another business.
2. Investment income that is not taxed until it is received, such as interest.
3. Income from the renting of non-residential property or land (less the expenses relating to that income).
4. Capital Gains on the sale/disposal of investments such as land, property, stocks, shares, bonds, and goodwill.

What happens if you cannot pay the full amount?

If you cannot pay the full amount owed when making a Let Property Campaign disclosure, it’s important to contact HMRC before submitting your disclosure or payment. The HMRC Let Property Campaign expects landlords to pay what they owe at the time of disclosure, but they understand that immediate full payment may not always be possible.

You should call the Let Property Campaign Helpline as soon as possible to explain your financial situation. When discussing your case, HMRC will ask for details such as:

1. Landlords letting non-residential properties, such as shops, garages, or commercial units.
2. Companies or trusts letting properties (the campaign is only for individuals).
3. Your Let Property Campaign disclosure online reference number
4. How and when do you plan to pay
5. Your current income and expenses
6. Assets you own, including property, vehicles, investments, or savings
7. Any debts, such as mortgages, loans, or credit cards

Based on this information, HMRC may agree to a realistic payment plan allowing you to spread the cost over time. It’s important not to submit your Let Property Campaign form or payment until you have spoken with HMRC and agreed on the next steps.

By being transparent and proactive during the letting property campaign, you can manage your liabilities effectively and still benefit from the reduced penalties offered by the campaign.

Let Property Campaign penalties

The Let Property Campaign (LPC) offers landlords a way to voluntarily disclose undeclared rental income and pay any outstanding tax with reduced penalties. However, if you fail to disclose or delay your disclosure, HMRC Let Property Campaign penalties may be significant, calculated based on the nature and timing of the non-compliance.

How are Let Property Campaign penalties calculated?-

HMRC calculates penalties as a percentage of the potential lost revenue, the additional tax due on undisclosed rental income. The penalty rate depends on:

1. Whether the failure to notify was deliberate or non-deliberate
2. Whether the failure was prompted (discovered by HMRC) or unprompted (voluntary disclosure)
3. The quality of your Let Property Campaign disclosure, including how well you cooperate by telling, helping, and providing access to records

Penalty ranges under the Let Property Campaign

From where does HMRC get its information?

HMRC is targeting landlords who have undeclared income and gains through various campaigns. They have extensive information powers and obtains details from the following sources –

• From the councils that have information about the landlords providing accommodation to the claimants of housing benefits.
• From the legal ownership details mentioned in the land registry.
• HMRC has also acquired powers to obtain information about third parties from the organisations which are engaged in providing services where letting agents or anyone else search for the tenants/organisations providing a similar service.
• Businesses that charge commission for services provided by another party.
• Anyone is handling money on behalf of another person.
• Traditional estate agents and local authorities.
• Internet-based letting services

Therefore, it is advisable landlords use the Let Property Campaign opportunity to disclose their undeclared income or face the risks of higher penalties and interests.

How can dns help?

• We have significant experience dealing with voluntary tax disclosures and tax investigations as one of the leading firms of Chartered Accountants and Tax Advisers in the United Kingdom.
• We will conduct a background check on your case and identify any issues that require disclosure.
• We will advise on the most appropriate steps to take to ensure a complete disclosure to HMRC and minimise the possibility of follow-up questions from HMRC.
• We will calculate the unpaid tax by taking into account all legitimate claims for tax relief/allowances.
• We will act as a buffer between you and HMRC, removing the need for you to speak with HMRC directly.
• We will advise you on the likely penalty position and evaluate all mitigating factors to help reduce your penalties as much as we can.
• If you wish to appoint us as your property tax accountant, we can assist you with your ongoing tax returns.

Also See: Buy To Let Limited Company Mortgages- Benefits for Small Business Owners

If you are a landlord who owes tax on your letting income and would like to bring your tax affairs in order by using the let property campaign, you must contact us before you speak with HMRC. Contact dns accountants on 03330886686, or you can also e-mail us at [email protected]

About the author

Owais Bombaywala
Working closely with individuals and businesses to help grow their business requires a significant amount of experience and industry knowledge. Owais is BA (Hons) Accounting and Finance and Member of ACCA. Besides being a compliance champion, he specialises in Property tax planning. With over 7 years of experience in Accountancy and Tax world, our clients count on us to give them timely and up to date advise to help them make the right move. Owais works closely with some of the DNS’s most valued clients to give them the confidence they need to focus on their business. He is known for his calm nature and proactive approach. At DNS, we proud to be a modern and client centric firm. Our advise doesn’t just look at what’s best for your business moreover our aim is to help you achieve your personal goals. Away from work, he resolve family disputes and provide care and support to elderly people. He is a founding member of Human welfare organisation Hounslow.