Non Resident Landlords
The Non-Resident Landlords (NRL) Scheme is a scheme for taxing the UK rental income of non-resident landlords.
The scheme requires UK letting agents to deduct basic rate tax from any rent they collect for non-resident landlords. If non-resident landlords don’t have UK letting agents acting for them, and the rent is more than £100 a week, their tenants must deduct the tax. When working out the amount to tax the letting agent/tenant can take off deductible expenses.
Letting agents and/or tenants don’t have to deduct tax if HM Revenue & Customs (HMRC) tells them not to. HMRC will tell an agent/tenant not to deduct tax if non-resident landlords have successfully applied for approval to receive rents with no tax deducted. But even though the rent may be paid with no tax deducted, it remains liable to UK tax. So non-resident landlords must include it in any tax return HMRC sends them.
Non-resident landlords who are eligible can apply at any time for approval to receive their UK rental income with no tax deducted. This includes applying before they have left the UK or before the letting has started.
Applications should be made by:
- an individual NRL1 (PDF) notes are incorporated
- a company NRL2 (PDF) notes are incorporated
- a trust NRL3 (PDF) see also NRL3 Notes (PDF)
- letter for sovereign immunes
Completed NRL applications should be sent to:
HMRC Personal Tax International
NRL Scheme Compliance S0708
PO Box 203
For individuals whose tax affairs are dealt with Public Departments 1 office the NRL1 should be sent to:
HM Revenue & Customs
Public Departments 1
Ty Glas Road
Please note we must have written consent including a landlord reference number from HMRC prior to beginning an initial tenancy.