Received a Letter from HMRC About AML?

05 Feb 2026

By Mirja Barton, Trainee Solicitor, Corporate, Gilson Gray

Here’s What to Do Next

Receiving a letter from HMRC suggesting you should check if you need to register for money laundering supervision and pointing out that it is a criminal offence to trade as an estate agent without being registered can feel unsettling. It can also be confusing if you don’t believe you are an estate agent in the traditional sense. Do not panic, here is what you should do next.

The key point to understand in this scenario is that HMRC’s view may not be final and the correct response to them depends entirely on the actual work you, or your business, conduct. This blog explains what the letter means, how the Estate Agents Act defines estate agency work, and the practical steps you should take next.

Why have you received the letter from HMRC?

HMRC is responsible for supervising estate agents for AML purposes in the UK. As part of its compliance work, HMRC can review information from a variety of sources, which may include tax records, online advertising, Companies House data, and third-party reports.

If HMRC believes your activities potentially fall within the scope of estate agency work, they may write to you asking why you are not registered for AML supervision. Importantly, this does not automatically mean you are in breach of the law, even if the letter points out that it is a criminal activity not to be registered. It does mean you need to take the letter seriously and respond appropriately.

The Estate Agents Act 1979 (the Act)

Whether you are required to register for AML supervision depends on whether your activities fall within the definition of ‘estate agency work’ defined in the Act. This definition is broader than many people expect and can apply to individuals who do not describe themselves as estate agents.

What is Estate Agency Work?

In simple terms, the Act says that a person is carrying out estate agency work if they:

• Do the work as part of business on instructions from another person; and
• Carry out activities aimed at introducing buyers and sellers of land; and
• Negotiate or assist in negotiating of the sale or disposal of land.

Estate Agency work can include commercial properties and leases, it is, therefore, not just a definition describing someone who sells houses.

Examples of activities that may fall within the definition include:

• Introducing a buyer to a seller of property
• Passing offers between parties
• Negotiating price or terms
• Marketing property on behalf of an owner

Crucially, the Act focuses on all aspects of the work you do, not your job title or how you market your businesses.

Why some people have been caught out

Many recipients of HMRC letters are:

• Property sourcers
• Consultants or advisers
• Individuals introducing investors to property owners
• Businesses assisting with off-market deals
• Surveyors, who also introduce buyers and sellers for negotiations

You may believe you are only providing “introductions” or “consultancy services,” but HMRC may take the view that, when looked at as a whole, your activities amount to estate agency work under the Act.

It should be noted that not all property related work falls within the Act. For example, simply providing general advice on property as a surveyor, or providing a platform to market properties without acting on instructions or negotiating may fall outside the definition. The distinction is often technical and very importantly based on the facts of the work you actually conduct.

What should you do if you have received a letter from HMRC?

1. Do not ignore it
   Ignoring the letter can escalate the matter and may result in penalties if HMRC later concludes you should have been registered. You should carefully check the letter for any deadlines to respond.
2. Review the work you actually do
   Analyse your business’ work against the definition of estate agency work in the Estate Agents Act. Ask yourself if your work falls within the definition or if your work is part of the exceptions mentioned. This factual analysis is critical.
3. Do not assume HMRC is automatically right
   HMRC’s initial view is often based on limited information. Many businesses are able to demonstrate that their activities do not meet the statutory definition when properly explained.
4. Carefully consider your response to HMRC
   A poorly worded or clumsily explained response can unintentionally make HMRC believe you are in scope for estate agency work. You must also ensure you have not missed some of the work you do and understood what estate agency work constitutes. Your explanation to HMRC must be accurate, complete, and legally correct.

What if HMRC decides you should have been registered?

If HMRC concludes that you are carrying out estate agency work, you may be required to address historic non-compliance and potentially pay fines. You will also need to register for AML supervision and implement policies and procedures for how you will follow the AML regulations. Legal advice can often limit exposure and help resolve matters more efficiently.

Take action early

If you have received a letter from HMRC suggesting you should be registered for AML purposes, make sure you take early action and understand how the law applies to your specific circumstances. A solicitor can analyse your circumstances against the Act and help you draft a letter in response to HMRC. Seeking early legal advice can help protect your business, reduce risk, and ensure that your dealings with HMRC are handled correctly from the outset.

The corporate team at Gilson Gray have extensive experience in estate agency regulations and AML compliance. We also advise on AML policies and procedures and what good practice look like. Please get in touch today if you have received a letter from HMRC.

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