HMRC Let Property Campaign (LPC)


Are you a landlord who owes tax on your rental profits? The Let Property Campaign (LPC) will help you pay any outstanding tax with minimum penalties. Instead of HMRC discovering unpaid tax during an enquiry, the LPC allows you to make a full, honest disclosure, in return for a better settlement.

Are you an eligible landlord?

If you fall into one or more of the below categories, then you’re a landlord who’s eligible to make a disclosure under the LPC:

– Let out 1+ UK properties

– Live abroad and let out UK property

– Live in the UK and let out property abroad

– Let a room in your main home

– Specialise in student lets

– Let out holiday homes

How many years to disclose?

As a landlord, the tax years you must disclose depends on the following:

Behaviour – what led to your unpaid tax?

Self-Assessment – were you registered in the relevant tax year?

Legislation time limits – how many years can HMRC collect, as set by statute? (as few as four years, or as many as 20)

If an LPC disclosure doesn’t present all assessable liabilities, HMRC could open an investigation do recover the tax, and impose higher penalties. Every personal circumstance is different, and our team of experts can provide tailored advice.

Does HMRC know rental income?

HMRC may receive information about a landlord’s property income from a range of sources:

– Letting agents

– Government agencies

– Local councils

– Banks

– The public

With this information, HMRC can then determine whether you have any unpaid tax. Then, they may send you a letter advising that they have reason to suspect your under-declared rental income – and invite you to make an LPC disclosure.

What to do if you receive an HMRC letter?

If HMRC sends you a letter about unpaid landlord tax, then you mustn’t ignore it. Their suspicions aren’t always correct, but they don’t write to you unless they have firm reason. We strongly recommend seeking professional advice to review your situation, even if you’re sure you’ve been fully compliant – at Mercian, our tax specialists can review your rental income and advise you on how to respond. This reduces the risk of unnecessary tax and penalties.

How soon to make an LPC disclosure?

For any concerns, it’s best to review your position on underdeclared rental income immediately. If you’re a landlord who’s made errors, we can help you register voluntarily for an LPC disclosure, and significantly reduce your tax penalties as a result – unprompted disclosures are viewed much more positively by HMRC than if they had written to you first.

How can you reduce tax penalties?

Where tax errors are identified, HMRC considers the following when deciding how high/low a financial penalty should be:

– Underlying behaviour

– Did you come forward voluntarily?

– Quality of LPC disclosure

A penalty is charged as a percentage of the outstanding tax, but our professional team can help you receive the minimum allowed by law.

What are the LPC disclosure steps?

Whether you receive a letter or make a voluntary registration, the LPC disclosure process takes these three steps:

1. LPC Registration – which notifies HMRC of your intention to voluntarily disclose the under-declared income. You will then get HMRC receipt confirmation within 15 days, and be issued a Disclosure Reference Number (DRN)

2. LPC Disclosure – this must include any missing rental income, as well as the associated tax, interest, and penalty liabilities. The deadline to submit your LPC disclosure is within 90 days of HMRC confirming your registration.

3. Tax Payment – you will make the unpaid tax payment at the time of submission, unless you’ve agreed a time to pay arrangement with HMRC.

How we can help with LPCs

Looking for bespoke advice on the LPC disclosure process? At Mercian, we understand that every situation is different, and will focus on your specific needs. Our friendly team of tax experts will:

1. Review – Carry out a comprehensive review of your tax affairs

2. Identify – Discover the issues that you need to disclose

3. Overview – Provide an initial summary of your tax exposure

4. Register – Where applicable, register you for the Let Property Campaign disclosure

5. Disclose – Prepare and submit your LPC disclosure to reduce your tax, interest, and penalties

6. Explain – If appropriate, explain your position to HMRC with a letter of representation

7. Pay – Make the tax payments affordable for you with a time to pay arrangement (if needed)

Get tax advice today

If you’d like us to get in touch, please fill in our contact form here, and we’ll arrange a convenient time for you to speak with one of our tax experts. Alternatively, if you’d prefer to speak to us directly, please call 01743 562 430, or email