The UK’s Budget 2026, published on 28 October 2026, confirms that HMRC will recruit a further 670 compliance officers by 2029-30, on top of a previous commitment to add 5,500, according to the government’s own Budget 2026 document. Alongside the extra staffing, the government is consulting on the use of third-party property income data, and the UK will join a new international agreement for the automatic exchange of information on real estate from 2029-30 — a mechanism tax advisory firms HaysMac and Price Bailey both flagged as a significant expansion of what HMRC can see.
Price Bailey tax investigations partner Andrew Park, commenting via Cambridge Network, said offshore bank accounts have already become largely transparent to HMRC, but property has historically been a harder asset for the tax authority to trace: “This could be particularly relevant to UK taxpayers who own second homes or investment properties overseas and receive rental income from them. Once automatic exchanges begin, HMRC will have another source of third-party information against which it can check what taxpayers have reported in the UK.” HaysMac’s Budget note frames it as part of a broader shift: “the direction of travel is clear: HMRC wants to identify problems earlier and intervene sooner.”
For UK tax residents who own property outside the UK — whether a second home, a rental investment, or a property purchased while living abroad — the practical change is that HMRC will no longer need to open an individual investigation to discover unreported overseas property income or gains; automatic data exchange will let it cross-check what’s already been declared. Both advisers recommend getting overseas property income and capital gains reporting in order before the exchange mechanism goes live in 2029-30, rather than waiting for a discrepancy to trigger an enquiry.
References
GOV.UK – Budget 2026 Document / HaysMac – Budget 2026: HMRC Gets More Tools to Close the Tax Gap / Cambridge Network – Budget Tax Compliance Drive Puts Small Businesses and Overseas Property Owners in HMRC’s Sights
