Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the amount of revenue lost through tax avoidance in relation to illegal subletting of homes as short-term lets in each of the last five years.

HM Revenue and Customs (HMRC) estimates the size of the tax gap, which is the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. The tax gap statistics and details of the estimate methodologies are published annually and are available at: Measuring tax gaps 2024 edition: tax gap estimates for 2022 to 2023 - GOV.UK.

The latest estimate of the tax gap arising from ‘moonlighters’ in the hidden economy is £0.9 billion for tax year 2022 to 2023. This figure includes an estimate of around £350 million from individuals in employment who have not paid tax on lettings. The lettings tax gap figure is not separately published due to methodological uncertainties and provides only a broad indicator of the tax gap.

HMRC does not separately estimate the tax gap due to tax avoidance in relation to illegal subletting of homes as short-term lets.