Two Benefits You Did Not Know About Participating in the HMRC Let Property Campaign (LPC)
If you’re a landlord in the UK, chances are you’ve heard of the HMRC Let Property Campaign (LPC). Launched a few years ago, this initiative aims to help landlords get their tax affairs in order, especially when it comes to rental income. The campaign offers a way to come clean and avoid the risk of hefty penalties. But here’s the kicker: beyond the obvious benefits of avoiding fines, there are a couple of advantages that many landlords might not be aware of. Let’s dive into two unexpected benefits of taking part in the HMRC Let Property Campaign.
1. You Can Get Backdated Tax Relief on Renovations and Repairs
Most landlords know that if you declare your rental income properly, you steer clear of penalties. What’s less well-known is that by joining the LPC, you can also claim backdated tax relief on certain expenses like repairs and renovations — even those from previous years.
Many landlords put off declaring income because they’re unsure what they can claim back. HMRC’s Let Property Campaign encourages honesty and transparency, which means you can tidy up your tax affairs retrospectively. If you had expenses related to improving or maintaining your property that you didn’t claim in the past, now’s your chance to bring those into the light. It could mean a fair chunk back in your pocket, especially if you had major works done but forgot to account for them.
This benefit alone can make the campaign worthwhile — it’s not just about paying what you owe, but also about claiming what’s rightfully yours.
2. Peace of Mind with HMRC’s Discretion on Penalties
Another advantage that often flies under the radar is the way HMRC handles penalties when you participate in the LPC. If you approach HMRC voluntarily and disclose any unpaid taxes before they come knocking, you’re usually treated more favourably.
This “disclosure facility” means HMRC can reduce or even waive penalties depending on your cooperation and honesty. So instead of facing a large fine that could hurt your finances, you might only have to pay the tax you owe plus a smaller penalty. This kind of leniency is hard to come by outside the campaign.
By stepping forward voluntarily, you show good faith, and HMRC often rewards that by cutting you some slack. It’s a way to stop worrying about the consequences hanging over your head and get your property business back on track.
Why Join the HMRC Let Property Campaign Now?
HMRC has ramped up efforts to track down undeclared rental income. They have access to more data than ever — from letting agents, mortgage lenders, and even third-party platforms like Airbnb. So, the risk of being caught has never been higher.
Taking part in the LPC isn’t just about avoiding penalties; it’s about taking control. The campaign closes soon and after that, HMRC will come down harder on landlords who haven’t declared their income. Joining now lets you sort things out on your own terms.
How to Get Started
Joining the Let Property Campaign is straightforward. You’ll need to disclose any rental income you haven’t declared for the last four years, plus any related expenses. If you’re unsure about the details or how to file, it’s worth getting advice from a tax professional. They can help you calculate the right figures and make sure you don’t miss out on any claims or benefits.
Wrapping Up
The HMRC Let Property Campaign is much more than a simple “come clean” scheme. Beyond dodging fines, landlords who take part can benefit from claiming backdated expenses and enjoy more lenient penalty treatment from HMRC. These perks make it a smart move for any landlord with undeclared rental income.
So if you’ve been putting off sorting out your rental tax, now’s the time to act. Jump on the Let Property Campaign before it closes, and you could be surprised at the benefits waiting for you. It’s a chance to clear your slate, claim what you deserve, and sleep easy knowing you’re playing by the rules.
