Let Property Campaign Disclosure

What is Let property campaign (LPC) disclosure?

The Let Property Campaign is an opportunity for landlords who owe tax through letting out residential property, in the UK or abroad, to get up to date with their tax affairs in a simple way and take advantage of the best possible terms.

If you’re a landlord and you have undisclosed income, you must tell HMRC about any unpaid tax now. You’ll then have 90 days to work out and pay what you owe. This guide explains how you can do that.

When & Who can apply for this LPC?

Landlords can apply for let property campaign if they meet the following conditions –

Landlord earning income from renting out a single property.
Landlord having multiple properties.
Specialist landlords, e.g. student or workspace rentals.
Renting out a room in your main home for an amount more than the threshold (£7,500 annually) limit specified under Rent a Room scheme.
Living in the UK and renting out an overseas property.
Living overseas for more than 6 months and renting out a property in the UK
Holiday lettings.

Need of Let property campaign (LPC) disclosure: –

Non-disclosure of taxes on rental income would mean landlords risk higher penalties if HMRC opened an enquiry. Under the let property campaign, Landlords can report undisclosed taxes that are due on the rental income of earlier years to HMRC. If the landlord is registered for self-assessment and has made a careless mistake in reporting the income, the maximum period they need to go back is 6 years to correct the error.

The normal penalties regime will apply when the disclosure is made under the campaign. The penalties will depend on why the landlord has failed to disclose the income, whether there was a reasonable excuse, or deliberately missed. The penalty could also be reduced based on the quality of disclosure and the information provided to HMRC.

If HMRC opens an enquiry, they can go back up to 20 years and will charge a higher penalty:

It could be 100% of the tax owed
It could be as high as 200%, in the case of offshore related income.

So, what are you waiting for, consult us and we are there to guide you?