Do you let residential property in the UK but live overseas?

The Non-Resident Landlord (NRL) scheme applies to landlords who let out property in the UK but are not personally resident in the UK for tax purposes.  Under the scheme, tax must be deducted from rents and paid over to HMRC by the letting agency or the tenant unless the non-resident landlord has successfully applied for an exemption (see below).

Letting agents

Letting agents must operate the NRL scheme where they collect rent on behalf of a non-resident landlord, unless HMRC have informed the letting agent in writing that the landlord can receive the rent without tax being deducted.


In circumstances where there is no agent involved, the tenant should deduct tax from rents paid to a non-resident landlord where the rent exceeds £100 per week.  Where the rent is less than £100 a week (£5,200 a year), the tenant is not required to deduct tax from the rent (unless told to do so by HMRC). The tenant is also relieved of the obligation to deduct tax if HMRC have notified the tenant in writing that the landlord can receive the rent without tax being deducted; however, the tenant must still register with HMRC and complete an annual return.

Where the tenant pays rent to a letting agent, it is the letting agent rather than the tenant who must operate the scheme.

Complying with the scheme

A new tenant or letting agent who is required to comply with the scheme should seek professional advice on how to register, work out the tax to be deducted each quarter and fulfil their obligations in terms of filing annual returns with HMRC and providing landlords with certificates of tax deducted.

The non-resident landlord

The non-resident landlord can set the tax deducted under the scheme against the overall tax payable on the profits of his or her property rental business.

If you are an overseas landlord, we can assist you with an application to receive rental income without a tax deduction. The NRL1 form is used to instruct HMRC that you will be calculating and paying the appropriate tax on profits through your tax return.  If the application is accepted by HMRC, your tenant/letting agent will be notified by HMRC that they do not need to deduct tax from rents.

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