Landlords could face HMRC penalties for tax reporting mistakes
Summary
The article reports that under proposed Finance Bill 2027 measures, HMRC would gain stronger powers to penalise landlords for tax reporting errors that are not corrected after a Customer Correction Notice. It also notes that HMRC recovered more than £100 million in unpaid tax from property owners in the latest reported year, following nudge letters.
Why it matters
Residential property surveyors may encounter clients affected by these reporting changes, particularly where property ownership, rental income or transaction records are involved. The article highlights a tightening compliance environment that could increase the consequences of inaccurate tax declarations for landlords.
Key points
- Finance Bill 2027 would allow HMRC to issue penalties for uncorrected tax reporting mistakes.
- HMRC could send a Customer Correction Notice requiring landlords to review and amend their tax return.
- Failure to respond could lead HMRC to treat an error as deliberate, increasing penalties.
- HMRC recovered £104.3 million in unpaid tax from 11,511 property owners in 2025 to 2026.
- The reported recovery followed the use of nudge letters and was the highest in seven years.
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