If you have rental property in the UK but your usual home is outside the UK, you are considered as a Non-resident Landlord. Non-Resident Landlords include members of HM armed forces and other Crown Servants who are outside the UK for over six months. Individuals who are outside the UK temporarily (less than six months) are not Non-Residential Landlords.
Your tenants or the letting agents you use have a statutory obligation to work within the rules of the Non-resident Landlord Scheme (NRL Scheme):
- The tenant or agent will have to deduct basic rate tax (currently 20%) from the rental income before they pass it onto you and make payments to the Inland Revenue on a quarterly basis.
- You can set this tax off against your own tax bill at the end of the year.
Alternatively, Non-resident Landlords who are eligible can apply for approval to receive rent with no tax deducted (this does not mean that tax will not be applicable). Applications must be made before the landlord leaves the UK or before the letting period starts. In the case of joint property ownership, both parties must apply.
Applications should be made by:
- an individual NRL1 (PDF 71K) (notes are incorporated)
- a company NRL2 (PDF 29K) (see also NRL2 Notes)
Completed applications should be sent to the office dealing with the Non-resident Landlord scheme. Individuals whose tax affairs are dealt with Public Departments 1 office (district reference 940) should send the NRL1 to:
Public Departments 1
Ty Glas Road
All other Non-resident Landlords should send their NRL application form to:
HM Revenue & Customs
CAR PTI Room 230
St John’s House
For detailed information about the Non-resident Landlord Scheme, please download the guidance notes from here: www.hmrc.gov.uk/cnr/nrl_guide_notes.pdf
Rent Locally’s HMRC reference no. is NA45160.