Letting agents to report landlords' rental income to HMRC under new tax measures
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The UK government will require letting agents and tenancy protection schemes to submit landlords' rental income details to HMRC as part of a plan to increase property income tax rates.
The Treasury announced that letting agents and tenancy protection schemes will be required to provide HMRC with details of landlords' rental income, including personal identifiers such as date of birth and National Insurance number. The move accompanies a planned rise in income tax on property earnings by two percentage points from April 2027, taking the rate to 24% for basic-rate taxpayers, 44% for higher-rate taxpayers and 49% for those on the additional rate.
Chancellor John Healey said the change is intended to strengthen the tax system and reduce reliance on manual notices, which HMRC currently issues more than 10,000 times each year. The Office for Budget Responsibility estimates the higher tax could generate an additional £400 million annually from 2028-29, while a new landlord registration fee of £65 per property is expected to raise about £200 million per year.
The landlord register, introduced by the Renters’ Rights Act, will begin rolling out in the West Midlands in December and is slated for nationwide coverage by November next year. Propertymark representative Greg Tsuman warned that the combined reporting requirements and registration could create a difficult situation for agents and landlords, suggesting that a centralized rental database might be a more efficient solution.
The Treasury was contacted for comment but did not respond.