THE PROPERTY FILTER TAKE
HMRC's Let Property Campaign recovered £104.3 million from landlords in 2025/26, the third consecutive year above £100 million, according to a Freedom of Information request by Price Bailey, a chartered accountancy firm.
11,511 landlords made voluntary disclosures - the highest count since 2018/19 - at an average of £9,063 each, down from a record £13,713 the prior year. HMRC is reaching more landlords but catching smaller cases.
If you have not declared all rental income, you may wish to speak to your accountant about making a voluntary disclosure through the Let Property Campaign before HMRC makes contact, as unprompted disclosures typically attract lower penalties.
Landlords paid £104.3 million in unpaid tax through HMRC's (HM Revenue & Customs) Let Property Campaign in 2025/26, according to a Freedom of Information (FOI) request by chartered accountancy firm Price Bailey, reported by Mortgage Solutions (28 July 2026). The total marks the third consecutive year the campaign has generated more than £100 million, as voluntary disclosures reached their highest volume since 2018/19.
Three Consecutive Years Above £100 Million
The 2025/26 total of £104.3 million is almost three times the £36.8 million collected in 2019/20, according to the Price Bailey FOI data. Since the Let Property Campaign launched in 2013, HMRC has recovered nearly £550 million in total from landlords with undeclared rental income.
Voluntary disclosures rose to 11,511 in 2025/26, the highest count since 2018/19. The average amount per case fell to £9,063, down from a record £13,713 the prior year. Andrew Park, a partner at Price Bailey, said: "HMRC's data-matching capability has become relentless. Most voluntary disclosures are now prompted by HMRC nudge letters, and we are seeing a clear trend in larger numbers of smaller cases."
The pattern points to HMRC catching up with smaller landlords. Many may own one or two properties. They may have been unaware of their obligations under Part 3 of the Income Tax (Trading and Other Income) Act 2005, which covers UK property income taxation.
How HMRC Identifies Undeclared Rental Income
HMRC cross-references Land Registry ownership data against Self Assessment returns. Landlords who appear to own rental property but have not declared rental income may receive a "nudge letter" - a formal prompt to review their tax affairs and make a voluntary disclosure where appropriate.
The numbers illustrate what is at stake. Consider a higher-rate taxpayer with a buy-to-let property generating £15,000 in annual rental income and £3,000 in allowable costs. Taxable rental profit is £12,000. At the 40% Income Tax rate for higher-rate taxpayers, the annual liability is £4,800. Over three undeclared years, that rises to £14,400 before interest and penalties. At the typical voluntary-disclosure penalty rate of 10-20% of tax owed, penalties alone could add £1,440 to £2,880 on top. Speak to your accountant to calculate your actual liability - this example is illustrative only and actual figures depend on your individual circumstances.
What Landlords Should Check Now
The Let Property Campaign allows landlords to come forward voluntarily. Doing so typically results in lower penalties than those imposed after an HMRC-initiated investigation. Voluntary disclosure penalties usually run at 10-20% of tax owed, while penalties following a formal HMRC inquiry can be substantially higher.
There is also a timing consideration. From April 2026, landlords with gross rental income above £50,000 must file quarterly digital returns under Making Tax Digital for Income Tax Self Assessment (MTD for ITSA). This increases HMRC's visibility of rental income. It reduces the window in which undeclared income can go undetected.
These rules apply to landlords in England, Wales, Scotland, and Northern Ireland. The Income Tax (Trading and Other Income) Act 2005 covers the whole of the UK. The Scottish rate of Income Tax differs for Scottish taxpayers, which may affect the amount owed but not the obligation to declare.
If you are uncertain whether your rental income has been correctly reported, the Property Filter free resources page is a useful starting point. Our stress test calculator can help you model your buy-to-let numbers before you speak to your accountant. For landlords thinking about portfolio structure and tax efficiency, the property investment strategies hub covers the key considerations. Landlords weighing incorporation should also review the business and systems hub.
Key takeaways
- HMRC's Let Property Campaign recovered £104.3 million from landlords in 2025/26, the third consecutive year above £100 million. - With 11,511 voluntary disclosures at an average of £9,063, enforcement is reaching smaller landlords than ever before. - Landlords with undeclared rental income may wish to speak to their accountant about a voluntary disclosure before HMRC makes contact, as unprompted disclosures typically attract lower penalties.
Landlords paid £104.3 million in unpaid tax through HMRC's (HM Revenue & Customs) Let Property Campaign in 2025/26, according to a Freedom of Information (FOI) request by chartered accountancy firm Price Bailey, reported by Mortgage Solutions (28 July 2026). The total marks the third consecutive year the campaign has generated more than £100 million, as voluntary disclosures reached their highest volume since 2018/19.
Three Consecutive Years Above £100 Million
The 2025/26 total of £104.3 million is almost three times the £36.8 million collected in 2019/20, according to the Price Bailey FOI data. Since the Let Property Campaign launched in 2013, HMRC has recovered nearly £550 million in total from landlords with undeclared rental income.
Voluntary disclosures rose to 11,511 in 2025/26, the highest count since 2018/19. The average amount per case fell to £9,063, down from a record £13,713 the prior year. Andrew Park, a partner at Price Bailey, said: "HMRC's data-matching capability has become relentless. Most voluntary disclosures are now prompted by HMRC nudge letters, and we are seeing a clear trend in larger numbers of smaller cases."
The pattern points to HMRC catching up with smaller landlords. Many may own one or two properties. They may have been unaware of their obligations under Part 3 of the Income Tax (Trading and Other Income) Act 2005, which covers UK property income taxation.
How HMRC Identifies Undeclared Rental Income
HMRC cross-references Land Registry ownership data against Self Assessment returns. Landlords who appear to own rental property but have not declared rental income may receive a "nudge letter" - a formal prompt to review their tax affairs and make a voluntary disclosure where appropriate.
The numbers illustrate what is at stake. Consider a higher-rate taxpayer with a buy-to-let property generating £15,000 in annual rental income and £3,000 in allowable costs. Taxable rental profit is £12,000. At the 40% Income Tax rate for higher-rate taxpayers, the annual liability is £4,800. Over three undeclared years, that rises to £14,400 before interest and penalties. At the typical voluntary-disclosure penalty rate of 10-20% of tax owed, penalties alone could add £1,440 to £2,880 on top. Speak to your accountant to calculate your actual liability - this example is illustrative only and actual figures depend on your individual circumstances.
What Landlords Should Check Now
The Let Property Campaign allows landlords to come forward voluntarily. Doing so typically results in lower penalties than those imposed after an HMRC-initiated investigation. Voluntary disclosure penalties usually run at 10-20% of tax owed, while penalties following a formal HMRC inquiry can be substantially higher.
There is also a timing consideration. From April 2026, landlords with gross rental income above £50,000 must file quarterly digital returns under Making Tax Digital for Income Tax Self Assessment (MTD for ITSA). This increases HMRC's visibility of rental income. It reduces the window in which undeclared income can go undetected.
These rules apply to landlords in England, Wales, Scotland, and Northern Ireland. The Income Tax (Trading and Other Income) Act 2005 covers the whole of the UK. The Scottish rate of Income Tax differs for Scottish taxpayers, which may affect the amount owed but not the obligation to declare.
If you are uncertain whether your rental income has been correctly reported, the Property Filter free resources page is a useful starting point. Our stress test calculator can help you model your buy-to-let numbers before you speak to your accountant. For landlords thinking about portfolio structure and tax efficiency, the property investment strategies hub covers the key considerations. Landlords weighing incorporation should also review the business and systems hub.
Key takeaways
- HMRC's Let Property Campaign recovered £104.3 million from landlords in 2025/26, the third consecutive year above £100 million. - With 11,511 voluntary disclosures at an average of £9,063, enforcement is reaching smaller landlords than ever before. - Landlords with undeclared rental income may wish to speak to their accountant about a voluntary disclosure before HMRC makes contact, as unprompted disclosures typically attract lower penalties.
Frequently asked questions
Frequently asked questions
What is the Let Property Campaign?
How does HMRC find landlords with undeclared rental income?
What penalties apply if I make a voluntary disclosure?
Does Making Tax Digital affect landlords?
Do these rules apply in Scotland and Northern Ireland?
