Landlords paid £104 million in voluntary tax disclosures in the last financial year as HMRC casts the net wider to catch those with a modest rental income but undeclared tax liabilities.

The number of voluntary disclosures made by landlords jumped to 11,511 in 2025/26 - the highest level since 2018/19 - after dipping to 7,803 last year, according to data obtained by chartered accountant Price Bailey. However, the average tax recovered per disclosure fell to £9,063, down from last year’s record £13,713.

These disclosures typically happen when landlords realise they haven’t declared rental income or have underpaid Capital Gains Tax after selling a rental property, made errors in previous tax returns, or receive an HMRC ‘nudge’ letter.

The data - released under a Freedom of Information request - represents tax recovered from voluntary disclosures under the Let Property Campaign, and from other compliance related activities, such as HMRC’s non-responder and discovery assessment work, says the firm. Since its launch in 2013/14, the campaign has brought in £674 million, while the 111,843 disclosures to date represent just under 5% of all UK landlords.

Identify

Price Bailey says HMRC is increasingly using Land Registry data to identify those who own multiple residential properties and may have undeclared rental income.

“HMRC’s data‑matching capability has become relentless,” explains Andrew Park, tax investigations partner (pictured above). “Most voluntary disclosures are now prompted by HMRC nudge letters, and we are seeing a clear trend in larger numbers of smaller cases. HMRC is casting the net wider and catching landlords who may only have modest rental income but still have undeclared tax liabilities.”

Accidental

Many of the those caught out are accidental landlords who are often genuinely unaware that they have taxable profits to disclose, he adds. Landlords can also be confused around the distinction between capital and revenue expenditure. While replacing a kitchen like‑for‑like is tax deductible, installing a significantly upgraded kitchen is not.

“A lot of landlords continue to be caught by the ‘phantom profit’ effect," adds Park. "Since mortgage interest relief was withdrawn, taxable profit can appear even when there is little or no real‑world profit. That mismatch is still driving arrears and compliance failures.”

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