What is the Non-Resident Landlord (NRL) scheme?

The NRL scheme requires UK letting agents or tenants to deduct basic rate tax from rental income paid to non-resident landlords, unless the landlord applies to HMRC for gross payment.

Do I still need to file a tax return if tax is deducted?

Yes, even if tax is deducted at source, you must still file a UK self-assessment tax return to declare your rental income and claim any allowable expenses.

How do I apply to receive rental income gross?

You can apply to HMRC (form NRL1) to receive your rental income without tax being deducted at source. This is usually approved if your UK tax affairs are up-to-date.

What expenses can a non-resident landlord claim?

You can claim many of the same expenses as resident landlords, such as letting agent fees, repairs, insurance, and interest on buy-to-let mortgages (subject to restrictions).

Non-resident landlord tax

Legal requirement
Recurring

The short answer

NRL scheme and UK returns for overseas owners

Price from: £250.00
Time on site: 1 to 2 hours

What you get

A consultation with an accountant to understand your tax obligations as an NRL and guidance on managing your UK property income tax.

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When do you need a Non-resident landlord tax?

You need this service if you are a non-UK resident receiving rental income from a UK property. It's crucial for understanding your tax obligations and ensuring your rental income is processed correctly.

What happens on the day

The accountant will discuss your residency status, UK property, and rental income/expenses. They will explain the NRL scheme and advise on registering for self-assessment and filing your tax returns.

How to prepare

Proof of your non-resident status.
Details of your UK property (address, purchase date).
Records of rental income and all expenses.
Information about your letting agent (if applicable).
Previous UK tax returns or correspondence from HMRC.

How to improve your result

Appoint a letting agent to handle your rental income and tax.
Ensure your letting agent withholds tax correctly under the NRL scheme.
Keep meticulous records of all income and expenditure.
Understand exchange rates if income is received in other currencies.

Why it is useful day to day

Properly managing non-resident landlord tax ensures you comply with UK law, avoid penalties, and optimise your tax liabilities on your UK rental income.

Why we ask these questions

We ask about your residency, property details, and rental income to determine your specific tax situation. This ensures the accountant provides accurate advice on the NRL scheme and other UK tax implications.