Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property118. Read the original article for full details.
HMRC Recovers £104m from Landlord Tax ‘Nudge Letters’ in 2025/26
HM Revenue & Customs (HMRC) recovered £104.3 million in unpaid tax from landlords during the 2025/26 financial year, according to a report by Property118. This marks the third consecutive year that the total amount recovered has exceeded £100 million.
During the same period, landlords made 11,511 voluntary disclosures to HMRC. This is the highest number of voluntary disclosures since the 2018/19 financial year.
The average payment made by landlords in 2025/26 was £9,063. This figure is lower than the previous year’s record average payment of £13,713.
These figures are relevant for UK letting agents and inventory clerks, as they highlight ongoing HMRC activity targeting landlord tax compliance. The continued use of ‘nudge letters’ by HMRC has resulted in significant sums being recovered from landlords who have not declared all their rental income.
Source: Property118