The Let Property Campaign is HMRC’s standing disclosure facility for individual landlords with undeclared rental income. You notify HMRC that you want to disclose, receive a reference number, and then have 90 days to work out what you owe, submit the disclosure and pay. Coming forward voluntarily generally means materially lower penalties than waiting for HMRC’s letter, and landlords who took reasonable care may pay no penalty at all.
Who the campaign is for
The campaign covers individuals with undisclosed income from letting residential property in the UK or overseas: single lets, multiple properties, holiday lets, and renting a room above the Rent a Room Scheme threshold. It is not available for non-residential property, and it cannot be used to disclose on behalf of a company or a trust.
How does the Let Property Campaign work?
There are two stages. First you notify HMRC of your intention to disclose, and HMRC issues a unique disclosure reference number. From the acknowledgement of that notification you have 90 days to complete the disclosure: calculate the undeclared income and gains, work out the tax, interest and penalty, submit the figures and pay what is due.
How many years can HMRC go back?
It depends on the behaviour behind the non-disclosure. Where reasonable care was taken, HMRC can assess a maximum of 4 years. Where the error was careless, the maximum is 6 years. Where the failure was deliberate, or you failed to notify HMRC that tax was due at all, HMRC can go back up to 20 years. Getting the behaviour categorisation right is where most of the negotiation in a disclosure sits, and it is an area where specialist advice earns its keep.
What penalties apply under the Let Property Campaign?
Penalties are a percentage of the tax owed and scale with behaviour and with whether the disclosure was prompted. UK liabilities can attract penalties up to 100% of the tax, and offshore liabilities up to 200%. A landlord who took reasonable care will not pay a penalty at all, and an unprompted voluntary disclosure sits at the bottom of the applicable penalty range. The direction of travel is simple: the terms are better when you approach HMRC than when HMRC approaches you.
What if HMRC writes to me first?
HMRC runs data from letting agents, deposit protection schemes, the Land Registry and overseas tax authorities against tax returns, and writes nudge letters to landlords it believes have undeclared income. A nudge letter does not shut the campaign to you, but it usually makes any disclosure “prompted”, which raises the minimum penalty. If the behaviour is judged deliberate, HMRC can open something far more serious, up to a COP9 fraud investigation. Acting before the letter arrives is cheaper on every axis.
Do I need an accountant to use the Let Property Campaign?
You can disclose yourself, but the calculation is rarely as simple as it looks: allowable expenses, mortgage interest relief changes across the years, capital gains on any disposals, the behaviour categorisation, and the penalty percentage are all judgement calls with money attached. Most landlords with more than a year or two to disclose come out ahead using an accountant who handles disclosures regularly.
After the disclosure: staying protected
A completed disclosure settles the past; it also puts you on HMRC’s radar for the future, and landlords remain one of the groups HMRC checks most actively. Tax investigation insurance covers the professional fees of dealing with HMRC enquiries so that a future check does not turn into a four-figure accountancy bill. See our guide to tax investigation insurance for landlords, or get a quote.