LET PROPERTY CAMPAIGN

The Let Property Campaign (LPC) gives you an opportunity to bring your tax affairs up to date if you are an individual who has been letting out residential property, either in the UK or abroad (including your holiday home).  It allows the taxpayer to make a voluntary disclosure via an online portal.

Provided a full and complete disclosure is made, there is usually no need to meet with HMRC face-to-face.  This can be a great relief to some taxpayers, particularly those who never set out to deliberately evade tax and are anxious to put things right.

The LPC is also designed to allow other tax irregularities to be “wrapped up” within the same disclosure, for example sundry interest earned on the rental income deposits. It is important to remember that, just because you may not have made a profit by letting out your property, you should still be declaring the income (and any appropriate expenses) to HMRC.

In order to make an LPC disclosure, it is necessary to apply to register under the campaign. Pending acceptance into the process, HMRC then allow the taxpayer 90 days to make a full and complete disclosure.

HMRC do, however, reserve the right to refuse entry into the process, in which case they may open a compliance check or, in more serious cases, a fraud investigation.  This is becoming more common as HMRC obtain more information from third party sources and is clearly best avoided, if possible.

Despite the voluntary nature of an LPC registration, it is also important to remember that the making of any tax disclosure is still a process that should be taken seriously. Failure to provide a full and complete disclosure of all relevant liabilities may have significant implications with HMRC.

We would therefore advise that any client considering making a disclosure of rental income speaks to a professional before initiating contact with HMRC, to ensure that the application for registration process runs as smoothly as possible and that the LPC is the best disclosure option for you.

Unfortunately, the LPC cannot be used by companies, trusts or those who have been letting out commercial property.  If this is you or your client, please do get in touch and we can discuss the best way forward.

HOW CAN LANCASTER KNOX HELP?

At Lancaster Knox our Tax Investigation specialists are industry recognised and have made hundreds of tax disclosures to the UK authorities over the years.  We are adept at managing interactions with HMRC to ensure that the process runs smoothly and that the client’s interests are best protected.

We also appreciate that, often, this is likely to be the first tax disclosure that the client has ever made and voluntarily approaching HMRC can be a nerve-wracking experience.  Lancaster Knox will work with you and your current adviser to ensure that HMRC do not seek to obtain information they are not entitled to, that the process is as unobtrusive as possible and give you peace of mind that any historical tax inaccuracies are resolved as soon as possible.