The Let Property Campaign is HMRC’s official disclosure facility for landlords who have undeclared rental income. It allows UK landlords to voluntarily declare unpaid tax on rental property income and usually results in lower penalties than waiting for HMRC to start an investigation.
If you own or have owned rental property and have not fully declared the income, the Let Property Campaign gives you a structured way to correct your tax position. HMRC continues to increase enforcement in the property sector, making early disclosure more important than ever.
This guide explains how the Let Property Campaign works, who should use it, how penalties are calculated, and what to do next.
What is the Let Property Campaign
The Let Property Campaign is a disclosure opportunity run by :contentReference[oaicite:0]{index=0} for landlords who have unpaid tax relating to rental income.
It applies to individuals, companies, trusts, and overseas landlords with UK property. The campaign covers undeclared income from residential property, commercial property, jointly owned property, and overseas rental income taxable in the UK.
The purpose of the Let Property Campaign is to encourage landlords to come forward voluntarily before HMRC identifies the issue through data matching or compliance checks.
Why the Let Property Campaign matters for landlords
HMRC considers rental income a high risk area for non compliance. Many landlords fail to declare income due to misunderstanding the rules rather than deliberate avoidance.
HMRC now receives data from
- Letting agents and online rental platforms
- Mortgage lenders
- Land Registry
- Overseas tax authorities
As a result, landlords who have not declared rental income are increasingly being identified. Using the Let Property Campaign before HMRC contacts you usually leads to significantly lower penalties and a quicker resolution.
Who should use the Let Property Campaign
You should consider the Let Property Campaign if any of the following apply.
- You have never told HMRC about rental income
- You declared some rental income but not all
- You claimed expenses incorrectly
- You did not declare rental income from overseas property
- You inherited rental property and did not realise tax was due
- You sold a rental property and did not report the gain
The campaign can apply to income earned many years ago. HMRC can go back up to twenty years where non disclosure is considered deliberate.
How the Let Property Campaign works
The Let Property Campaign follows a three stage process.
Notify HMRC of your intention to disclose
You must first notify HMRC that you intend to make a disclosure under the Let Property Campaign. This secures your position and starts the disclosure window.
After notification, you have 90 days to prepare and submit your disclosure.
Calculate tax, interest, and penalties
You must calculate
- Undeclared rental income for each tax year
- Allowable property expenses
- Tax due
- Interest on late paid tax
- Penalties based on behaviour
Penalties depend on whether HMRC considers the error to be careless or deliberate. Voluntary disclosure under the Let Property Campaign significantly reduces penalties compared to an HMRC investigation.
Submit the disclosure and make payment
The disclosure is submitted online along with payment of tax, interest, and penalties. Where full payment is not possible, a time to pay arrangement may be requested.
HMRC may review the disclosure and ask further questions before confirming acceptance.
Let Property Campaign penalties explained
One of the main benefits of the Let Property Campaign is penalty mitigation.
Unprompted disclosures under the campaign typically receive lower penalties. Prompted disclosures after HMRC contact usually result in higher penalties.
Accurate classification of behaviour is essential. Incorrect penalty categorisation is a common reason HMRC challenges disclosures.
What happens if you do not use the Let Property Campaign
Landlords who ignore undeclared rental income face increased risk.
HMRC may
- Open a formal enquiry
- Issue tax assessments covering multiple years
- Apply higher penalties
- Charge interest
- Pursue criminal investigation in serious cases
Once HMRC opens an enquiry, the Let Property Campaign is often no longer available.
Common Let Property Campaign mistakes
Landlords frequently make errors when submitting disclosures without advice.
Typical mistakes include
- Understating rental income
- Overclaiming expenses
- Missing earlier tax years
- Incorrect mortgage interest treatment
- Misclassifying behaviour for penalty purposes
Errors can result in HMRC reopening the case or escalating compliance action.
Do you need professional help with the Let Property Campaign
Many landlords choose professional support due to the financial and legal implications.
Professional assistance can help with
- Correct tax calculations
- Penalty reduction strategies
- Handling HMRC correspondence
- Negotiating time to pay arrangements
- Reducing the risk of further enquiries
Support is particularly valuable where multiple properties, overseas income, or long periods of non disclosure are involved.
Let Property Campaign FAQs
Is the Let Property Campaign still open
Yes. The Let Property Campaign remains open and HMRC actively promotes voluntary disclosure.
How far back does the Let Property Campaign go
HMRC can assess up to four years for innocent errors, six years for careless behaviour, and up to twenty years for deliberate non disclosure.
Can I use the Let Property Campaign if HMRC has contacted me
In most cases, once HMRC has opened an enquiry, the Let Property Campaign is no longer available and higher penalties apply.
Does the Let Property Campaign apply to overseas landlords
Yes. Overseas landlords with UK rental income can use the Let Property Campaign to disclose unpaid UK tax.
Why early action matters
HMRC’s use of data and analytics continues to expand. Voluntary disclosure under the Let Property Campaign offers the best chance to resolve matters on favourable terms.
Early action provides
- Lower penalties
- More control over the process
- Reduced stress and uncertainty
Delaying action usually increases cost and risk.
Disclaimer
This content is for general information only and does not constitute tax or legal advice. Tax rules change and individual circumstances vary. Always seek professional advice before taking action.