Non-resident landlords

The Non-resident Landlords (NRL) is a scheme for taxing the UK rental income of persons whose ‘usual place of abode’ is outside the UK.

Non-resident landlords are persons who have UK rental income and whose usual place of residence is outside the UK. An individual will be treated as non-resident for this purpose if he is absent from the UK for six months or more.

You must pay UK tax on your rental income from UK property even if you’re not a UK resident.

For the purposes of the NRL Scheme, the year runs from 1 April to the following 31 March. Letting agents or tenants who have to operate the scheme must account for tax each quarter – that is, for the three month period ending on 30 June, 30 September, 31 December and 31 March.

Your letting agent or tenant will deduct basic rate of tax from your rent. They will give you a certificate at the end of the tax year showing how much tax they have deducted and paid to HM Revenue and Customs.

You will be required to file a self-assessment return by 31 January following the end of the tax year in which you received the rental income.

At Martax, we can help you to:

  • Calculate your taxable profits on the property
  • Advise on claiming all the legitimate expenses to optimize tax savings
  • Complete your tax return using HMRC approved software
  • Advise you on the tax liability to be payable to HMRC and when they are due or if they have deducted too much tax at source, the refund to be credited direct to your bank account.

For more information and arrange a free consultation, please get in touch.

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