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. Your Let Property Campaign disclosure online reference number
2. How and when do you plan to pay
3. Your current income and expenses
4. Assets you own, including property, vehicles, investments, or savings
5. 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

How can dns help?

The Let Property Campaign (LPC) can be complex for many landlords, especially when it comes to understanding tax liabilities and making accurate disclosures. This is where dns accountant can help significantly.

dns is a specialist tax advisory service with extensive experience in assisting landlords through the HMRC Let Property Campaign. With our team, your disclosure will be accurate and timely, helping you avoid costly errors and reduce penalties. We also assist in calculating the correct tax owed, negotiating payment plans if you cannot pay in full, and providing ongoing support to keep your tax affairs compliant.

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 enquiry@dnsaccountants.co.uk

Frequently Asked Questions

What is the Let Property Campaign, and how can it help with undisclosed income?

The Let Property Campaign is an HMRC initiative that allows landlords to voluntarily disclose any undisclosed rental income from residential properties. By making a timely disclosure, landlords can pay the outstanding tax with reduced penalties and avoid harsher consequences such as investigations or criminal prosecution.

How do I make a Let Property Campaign disclosure?

You can make a Let Property Campaign disclosure online through HMRC’s Digital Disclosure Service. First, notify HMRC of your intention to participate, receive a unique reference number, then submit full details of your undeclared income and pay the tax owed within 90 days using the official Let Property Campaign form.

What are the penalties under the Let Property Campaign?

Penalties depend on whether the failure to disclose was deliberate or non-deliberate, and whether the disclosure was prompted by HMRC or voluntary. Penalty rates range from 0% up to 100% of the potential lost revenue.

Is there a Let Property Campaign calculator to estimate what I owe?

While HMRC does not provide an official calculator, many tax advisors and accountants offer Let Property Campaign calculator tools to help landlords estimate their unpaid tax and potential penalties based on rental income, allowable expenses, and tax bands.

What happens if I cannot pay the full amount owed immediately?

If you cannot pay in full, you should contact HMRC promptly to discuss a payment plan. HMRC is usually willing to agree on reasonable instalment arrangements, especially if you disclose voluntarily through the letting property campaign.

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