Last updated: 18 October 2026
Non-resident landlord tax: what you need to know for 2026/27
If you live outside the UK for tax purposes and receive rent from UK property, you are a "non-resident landlord". You still pay UK tax on your UK rental profits. The Non-Resident Landlord (NRL) Scheme sets out how that tax is collected.
How the NRL Scheme works
Under the scheme, your UK letting agent must deduct basic rate tax (20%) from your rent and pay it to HMRC every quarter. If you have no agent and your tenant pays more than £100 a week, the tenant must deduct the tax instead. The agent or tenant can deduct allowable expenses they pay on your behalf before working out the tax.
Receiving rent without tax deducted
You can apply to HMRC to receive your rent gross (without tax taken off) if your UK tax affairs are up to date. Individuals use form NRL1, companies use NRL2 and trustees use NRL3. If HMRC approves, you report the income and pay any tax through Self Assessment instead.
Your UK tax return
Most non-resident landlords must file a Self Assessment return, including the SA105 property pages and the SA109 residence pages. Many British citizens and nationals of certain countries can still claim the £12,570 Personal Allowance. Mortgage interest relief is given as a 20% tax credit, as it is for UK-resident landlords. The online deadline for 2025/26 is 31 January 2027.
Companies that own UK property
Since 6 April 2020, non-resident companies pay UK Corporation Tax on UK rental profits, not Income Tax. The rates are 19% to 25% depending on profits.
Changes coming in April 2027
From 6 April 2027, property income will be taxed at separate rates of 22%, 42% and 47%. The government has said the NRL Scheme withholding rate will be updated to match the new property basic rate.
Selling UK property as a non-resident
Non-residents must report the sale of UK land or property to HMRC within 60 days of completion, even if no tax is due. Capital Gains Tax rates for 2026/27 are 18% and 24% for individuals. Non-residents also pay a 2% Stamp Duty Land Tax surcharge when buying residential property in England and Northern Ireland.
Non-resident landlord FAQs
Do I have to register with HMRC?
Your letting agent registers under the NRL Scheme. You should register for Self Assessment so you can file returns and claim allowances.
Can I claim back tax deducted by my agent?
Yes. Tax deducted under the scheme is credited against your final liability on your tax return. Any overpayment is refunded.
What is form NRL6?
It is the annual certificate your agent or tenant gives you, showing the rent and tax deducted. You need it for your tax return.
Living abroad and letting UK property? Our non-resident landlord accountants handle NRL1 applications, Self Assessment and 60-day property returns. See our non-resident landlord packages, read the general landlord tax guide, or call +44 203 4411 258.