Forgot to Declare UK Rental Income While Living Abroad?

Here’s What You Need to Know (And Do Next)

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If you’re an expat living overseas and renting out property in the UK, you’re not alone. Many British citizens and foreign nationals who’ve moved abroad continue to generate income from UK property—whether it’s a single buy-to-let flat or a small portfolio of homes.


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But here’s a common issue we encounter: a surprising number of landlords living abroad forget—or simply don’t realise—they need to declare this income to HMRC.


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If that sounds like you, the good news is that there’s a clear, structured way to bring your tax affairs up to date: the Let Property Campaign. If dealt with correctly and proactively, it can help you avoid severe penalties, and in many cases, significantly reduce your tax liability. Here’s what you need to know.

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🌍 Understanding Your Tax Obligations as a Non-Resident UK Landlord

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Even if you live outside of the UK, you are still legally required to declare and pay UK tax on income generated from UK property. This applies whether you're working in Dubai, retired in Spain, or living with family in Australia.


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The UK tax year runs from 6 April to 5 April. Each year, you’re required to complete a Self-Assessment Tax Return to report your rental income, allowable expenses, and calculate your tax liability.


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If you’ve rented out property and haven’t submitted a return, you may be in breach of your UK tax obligations—even if you didn’t realise you needed to declare the income, or if the rent only just covered your mortgage.

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🏠 The Let Property Campaign: A Lifeline for Overseas Landlords

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The Let Property Campaign (LPC) is an HMRC disclosure initiative aimed specifically at landlords—especially those who have underdeclared or not declared rental income at all.


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The campaign offers a valuable opportunity to come clean voluntarily, declare the income correctly, and settle any outstanding tax liabilities—often with reduced penalties and interest.


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Benefits of using the Let Property Campaign include:

1. Reduced penalties for voluntary disclosure
2. Opportunity to negotiate a manageable payment plan
3. Avoidance of costly investigations or legal proceedings
4. Peace of mind that your affairs are in order

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🤔 What If I Didn’t Know I Had to Declare Rental Income?

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This is more common than you might think. Many expat landlords assume that because they're living abroad, or because their rental income is modest, they aren’t required to report it in the UK.


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Others may believe that their managing agent takes care of everything (they don’t—unless specifically contracted to handle tax affairs).


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Unfortunately, “I didn’t know” isn’t a defence in the eyes of HMRC. However, disclosing now via the Let Property Campaign can significantly reduce penalties, particularly if you can demonstrate the error was not deliberate.

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📅 How Far Back Do I Need to Go?

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This depends on your circumstances. If HMRC deems the error was:


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• Careless, they can ask for up to 6 years of backdated returns.
• Deliberate, they can go back 20 years.


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However, the key is to disclose voluntarily before HMRC contacts you, which helps demonstrate your intention to comply and can reduce the scope of penalties.

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📝 What Does the Disclosure Process Involve?

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Here's a simplified overview:


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1. Notify HMRC that you wish to take part in the Let Property Campaign.
2. Gather financial information, including rental income, mortgage interest, letting agent statements, and expenses for each tax year.
3. Calculate your tax liability for each year (a tax adviser can help here).
4. Submit your disclosure and pay what you owe, including any interest and penalties (which are often reduced for voluntary disclosures).

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⏳ Don’t Wait for HMRC to Find You

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HMRC has ramped up its use of data matching, international bank account information, and property letting platforms (like Airbnb and letting agents) to identify undeclared rental income. The longer you leave it, the higher the risk and potential cost.

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Making a proactive disclosure via the Let Property Campaign is the smart, responsible way to correct past errors and avoid the stress and penalties of an HMRC investigation.

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💼 How We Can Help

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As tax specialists working with expats worldwide, we help overseas landlords navigate the Let Property Campaign and Self-Assessment process with confidence and clarity. Our services include:


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• Reviewing your historic rental income and expenses
• Calculating any tax owed and preparing backdated returns
• Managing the disclosure to HMRC on your behalf
• Negotiating payment arrangements, where appropriate
• Ensuring ongoing compliance for future tax years


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Whether you're living in Europe, Asia, the Middle East, or beyond—our team can manage the entire process remotely, with minimal disruption to your life abroad.