If you’ve received an HMRC nudge letter, or even if you haven’t and wish to correct historic irregularities in reporting your property income, we recommend using the Let Property Campaign (LPC) to put things right. Here’s what you need to know about the LPC and how we can help.

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The Let Property Campaign (LPC) is an HMRC disclosure initiative, designed to help landlords regularise any historic UK tax irregularities associated with their rental profits. The LPC allows landlords to make a full disclosure of any unpaid tax, under settlement terms that are often more preferable than if the irregularities were discovered as part of an HMRC enquiry. This is because where an LPC disclosure is accurate and complete, HMRC will often only charge the minimum financial penalty.

Who can use the LPC?

A wide variety of residential property landlords are eligible to make a disclosure under the LPC, such as:

• Landlords who let out one or more UK properties

• Landlords who live abroad and let out property in the UK

• Landlords who live in the UK and let out property abroad

• Landlords who let out a room in their main home

• Landlords who specialise in property lets for students

• Landlords who let out holiday homes

How far back do landlords need to disclose?

The number of assessable tax years will depend on several factors. While Buzzacott’s team of experts will be able to provide bespoke advice that is specific to your case, it will always be necessary to consider the behaviour that led to the irregularities in your tax affairs and whether you were registered for Self-Assessment in the relevant tax year. HMRC’s powers to raise assessments are restricted by the time limits set out in legislation. It’s vital that your disclosure presents all of the tax liabilities that HMRC remains in time to collect (as set by statute). This could be as many as 20 years or as few as four tax years. Where an LPC disclosure doesn’t present all the assessable tax liabilities, HMRC may well open an investigation and seek to recover additional tax and higher penalties.