Content reviewed 2 Sept 2026 · 2026/27 tax year

Let Property Campaign — UK Landlord Disclosure Guide

Behind on rental-income disclosures? HMRC's Let Property Campaign lets UK landlords come forward voluntarily, pay what's owed, and access reduced penalties. Here's exactly how it works in the 2026/27 tax year.

Why disclose now?

HMRC cross-references Land Registry, mortgage data, deposit-protection schemes (TDS/DPS/MyDeposits) and Airbnb's reporting feed. Most undeclared lettings now get flagged automatically. Voluntary disclosure keeps penalties at 0–30% — investigation-led can hit 100%+.

The 3-step disclosure process

Notify HMRC via the online form ("notification of intention to disclose"). You'll get a Disclosure Reference Number, and 90 days from the date you receive your notification acknowledgement to disclose and pay.
Calculate what you owe — total rental income minus allowable expenses for every undisclosed tax year, plus the appropriate interest and self-assessed penalty.
Make the disclosure and pay via the Digital Disclosure Service. You can request a payment plan if you can't pay in full.

Penalty bands at a glance

• 0% — reasonable care taken (HMRC expects few to qualify)
• 0–30% — careless, disclosed voluntarily (unprompted)
• 15–30% — careless, prompted by HMRC contact
• 20–70% — deliberate, disclosed voluntarily
• 35–70% — deliberate, prompted
• 30–100% — deliberate and concealed (50–100% if prompted)
• up to 200% — offshore liabilities

If you take a significant period (normally over 3 years) to put things right, HMRC will not usually reduce your penalty by more than 10 percentage points above the minimum of the range. You'll also pay interest on every year owed — the late-payment rate is 7.75% (Bank of England base rate 3.75% plus 4 percentage points), charged daily.

Common allowable expenses landlords forget

• Letting agent and management fees
• Buildings and landlord insurance
• Repairs and like-for-like replacements (not improvements)
• Ground rent, service charges and council tax during void periods
• Mortgage interest — restricted to a 20% tax credit since 2020/21
• 100% of replacement domestic items (washing machine, sofa, etc.)

If your gross property income is under £1,000 you can use the property allowance instead of claiming expenses, and letting a room in your own home is covered by the £7,500 Rent a Room allowance.

Staying compliant after you disclose

A disclosure only settles the past. Going forward you must file a self-assessment return by 31 January each year (5 October to register if you're new to it). From 6 April 2026, Making Tax Digital for Income Tax also applies to landlords and sole traders with gross property or trading income above £50,000, meaning quarterly digital updates — that threshold drops to £30,000 from April 2027 and £20,000 from April 2028.

Figures verified against HMRC's Let Property Campaign: your guide to making a disclosure (updated 6 April 2026) and HMRC's published late-payment interest rates.

Frequently asked questions

What is the Let Property Campaign?

It's a long-running HMRC disclosure scheme for residential landlords who haven't told HMRC about all their rental income. Disclosing voluntarily through the campaign typically attracts a much lower penalty than if HMRC opens an investigation first.

Who needs to use the Let Property Campaign?

Any landlord with undeclared income from residential property — accidental landlords, inherited rentals, holiday lets, Airbnb hosts, people renting a room above the £7,500 Rent a Room limit, or anyone who never registered for self-assessment. It also covers landlords living abroad (or intending to for more than 6 months) who let out UK property. It does not cover non-residential lettings such as a shop, garage or lock-up, or disclosures made on behalf of a company or trust.

What penalties might I face?

Through the campaign, careless errors are penalised at 0–30% of the unpaid tax and deliberate behaviour at 20–70% (30–100% if concealed) — coming forward voluntarily puts you at the bottom of each range. If you took reasonable care there's no penalty at all, though HMRC says few people qualify. Statutory maximums are 100% of the tax for UK income or gains and 200% for an offshore liability, plus interest on every year unpaid.

How many years back will HMRC look?

Up to 20 years if you deliberately misled HMRC or never registered for self-assessment at all, 6 years if you were careless, or 4 years if you registered on time and took reasonable care. HMRC expects most people to pay for a maximum of 6 years. Income for the current tax year and the year just ended goes on a tax return rather than in the disclosure.

What information will I need?

Rental income and allowable expenses for every undisclosed year, mortgage interest statements (relief was phased down from 2017/18), agent fees, repairs and insurance. The mortgage-interest restriction (a 20% basic-rate tax credit instead of a full deduction) has applied to all residential lets since 2020/21. If your records are incomplete, HMRC expects a documented best estimate — and can charge up to £3,000 for failing to keep proper records.

Need to work out the tax you owe before disclosing? Start with our Self Assessment Calculator or Rental Yield Calculator. For one-off side-hustle income under £1,000, check the Trading Allowance Calculator — though property income uses a separate £1,000 property allowance.