HMRC recovered over £100 million in unpaid tax from landlords during the 2025-26 financial year, according to figures obtained by accountancy firm Price Bailey. The £104.3 million collected is nearly three times the £36.8 million recovered in 2019-20 and marks the third consecutive year that receipts have surpassed £100 million.
The increase follows HMRC's intensified use of property data, including Land Registry information, to identify owners of multiple residential properties who may not have declared rental income. This approach involves sending "nudge letters" to encourage reviews of tax affairs and voluntary disclosures.
A total of 11,511 landlords made voluntary disclosures through HMRC’s Let Property Campaign, the highest number since 2018-19. The average payment from these disclosures was £9,063.
Price Bailey highlighted that the distinction between capital and revenue expenditure continues to cause confusion for landlords. Additionally, recent tax changes, such as the introduction of Making Tax Digital for Income Tax from April 2026 for some landlords, a reduction in the annual Capital Gains Tax exemption, and higher CGT rates on residential property disposals, have made compliance more complex.