A fresh analysis by a leading tax investigation specialist has shed new light on HMRC’s Let Property Campaign, revealing that the initiative has brought in nearly £250 million over the past decade as the UK tax authority steps up efforts to tackle non-compliance among landlords.
The analysis, released by Amit Puri—founder of Pure Tax and a former senior HMRC inspector—details how the campaign has progressed since its 2013 launch. Initially aiming to recover £500 million, the campaign has now passed the halfway mark in collected revenue, targeting landlords who fail to declare rental income.
Puri, who spent a decade at HMRC, highlights in his report that the campaign operates as a “last chance” opportunity for landlords to voluntarily disclose previously unreported rental earnings, typically resulting in lower financial penalties than those levied through formal investigations.
Landlords in the Crosshairs
The publication comes as HMRC ramps up wider enforcement activity. The government recently pledged to recruit 5,000 additional tax officials over the next five years to address the UK’s £39.9 billion annual tax gap.
HMRC estimates that as many as 1.5 million landlords may not be fully tax compliant. In 2022-23, rental property generated £47.2 billion in income, with £2.31 billion coming from furnished holiday lettings. Yet undeclared income remains a key concern for the revenue authority.
“Making any kind of tax disclosure to HMRC can be an uncomfortable experience,” Puri commented. “Experienced tax investigation specialists understand this and provide peace of mind while keeping abreast of campaign developments.”
Recent enforcement figures suggest a more aggressive approach from the taxman. By September 2024, HMRC had pursued 300 tax crime prosecutions, a 19% increase over the previous year.
Penalties and Disclosure Process
The Let Property Campaign offers reduced penalties—ranging from 0% to 35% of unpaid tax—for landlords who come forward before HMRC launches an investigation. In contrast, penalties can soar to 100% for those who delay disclosure.
Experts advise that voluntary disclosures typically lead to penalties in the 10–20% range and can cover a range of issues, including unreported rental income, capital gains on sales, and offshore or crypto-linked assets. Once a landlord notifies HMRC, they have 90 days to calculate and settle any outstanding tax liabilities.
Changing Landscape for Landlords
The new findings come amid sweeping changes to the UK’s property tax framework. Starting April 2026, landlords earning more than £50,000 annually from rental income must comply with Making Tax Digital for Income Tax Self Assessment, submitting quarterly digital returns.
Meanwhile, capital gains tax on property disposals is set to rise—moving to 14% in April 2025 and increasing to 18% the following year.
“The combination of increased enforcement resources, enhanced data analytics capabilities, and changing tax compliance requirements creates a challenging environment for property investors who haven’t maintained full compliance,” said Dr. Sarah Mitchell, a tax policy researcher at Warwick Business School.
Call for Professional Advice
Given the complexity of current tax rules, particularly for landlords with overseas assets or cryptocurrency holdings, professionals stress the importance of specialist guidance. Firms like Pure Tax, which advise on serious HMRC procedures such as Code of Practice 8 and 9 investigations, say that the risks of going it alone have never been higher.
As HMRC tightens its net, analysts expect continued pressure on landlords to ensure full compliance, with voluntary disclosure increasingly seen as the prudent path forward.