Non Resident Landlords

Are you a non resident and have rental income from UK properties?

Non-resident landlord scheme

A non-resident landlord is a landlord who lets out property in the UK but spends more than six months in the tax year outside the UK. A special tax scheme – the non-resident’s landlord scheme – applies to these landlords. Under the UK non-resident landlord scheme, the tax must be deducted by a letting agent or tenant from the rent paid to the non-resident landlord and paid over to HMRC.

  • You need to pay tax on your rental income if you rent out a property in the UK.
  • You may also need to pay tax if you make it again when you sell residential property in the UK.

  • If you live abroad for 6 months or more per year, you’re classed as a ‘non-resident landlord’ by HM Revenue and Customs (HMRC) – even if you’re a UK resident for tax purposes.

How you pay tax

You can get your rent either:

Get your rent in full

If you want to pay tax on your rental income through Self Assessment, fill in the non-resident landlord form NRL1i and send it back to HMRC.

If your application is approved, HMRC will tell your letting agent or tenant not to deduct tax from your rent and you’ll need to declare your income in your Self Assessment tax return.

HMRC will not approve your application if your taxes aren’t up to date, eg you’re late with your tax returns or payments.

Get your rent with tax deducted

Your letting agent or tenant will:

If you don’t have a letting agent and your tenant pays you more than £100 a week in rent, they’ll deduct the tax from their rent payments to you.

Courtesy: HMRC

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