by Asim Abbas
11 November 2026 
Non-Resident Landlord Scheme: renting out UK property from abroad
Non-Resident Landlord Scheme: renting out UK property from abroad
If you live abroad and rent out a property in the UK, the rental income is still taxable here, and the Non-Resident Landlord Scheme decides how that tax is collected.
- UK rental income is taxable in the UK wherever you live
- Agents or tenants deduct 20% tax unless you’re approved
- Apply on form NRL1 to receive rent gross
- You still file a UK Self Assessment return
Unless HMRC approves you to receive rent gross, your letting agent or tenant must deduct basic rate tax before paying you.
This guide explains how the scheme works, how to apply to receive rent without deduction and what you still need to file.
Who the scheme covers
The scheme applies if your usual place of abode is outside the UK, normally if you’re away for six months or more, and you receive rent from UK property. It covers individuals, companies and trustees. It’s about where you live, not your residence status for tax, so someone can be UK tax resident and still within the scheme.
How tax is collected
- Letting agent: deducts basic rate tax from rent less allowable expenses they pay, and pays it to HMRC quarterly
- No agent, rent over £100 a week: the tenant must deduct tax
- No agent, rent £100 a week or less: no deduction unless HMRC tells the tenant to
Agents and tenants must register with HMRC and give you an NRL6 certificate each year showing the tax deducted.
Rental income tax calculator
Estimate UK tax on your rent.
Receiving rent without deduction
You can apply to HMRC to receive rent gross if your UK tax affairs are up to date, you’ve never had UK tax obligations, or you don’t expect to owe UK tax. Individuals use form NRL1, companies NRL2 and trustees NRL3. Once approved, HMRC tells your agent or tenant to stop deducting.
Hamid moves to Dubai and lets his Manchester flat for £1,100 a month through an agent. Without approval, the agent deducts 20% from rent less expenses: with £200 of monthly costs, that’s £180 a month withheld. After Hamid is approved under NRL1, he receives the full net rent and pays any tax through his Self Assessment return instead.
You still file a tax return
Non-resident landlords must file a UK Self Assessment return each year, reporting the rental profit. Tax deducted under the scheme counts towards the bill. Many non-residents still get a UK personal allowance, including British citizens and EEA nationals, which can reduce or wipe out the tax.
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Get a fixed-fee quoteCall 0161 531 4179Mortgage interest and expenses
The same rules apply as for UK residents. Mortgage interest gives a 20% tax credit rather than a deduction. Repairs, letting fees, insurance and service charges are allowable. See our landlord tax return guide.
Selling UK property as a non-resident
Non-residents must report the sale of UK land or property to HMRC within 60 days of completion, even if there’s no tax to pay. CGT is charged on gains since April 2015 for residential property, or you can elect to use time apportionment or the full gain. See our guide to CGT on property.
Making Tax Digital
Non-resident landlords with UK property income above the threshold are within Making Tax Digital for Income Tax, just like UK residents.
Read HMRC’s Non-Resident Landlord Scheme guidance, or see our non-resident and foreign income service.
What should I do next?
They must operate the scheme.
To receive rent gross.
Every year.
Frequently Asked Questions
Do non-residents pay UK tax on rental income?
Yes. UK rental income is taxable in the UK wherever you live.
What is form NRL1?
The application for an individual non-resident landlord to receive rent without tax deducted.
Do I still need to file a tax return if tax is deducted?
Yes. Non-resident landlords file a UK Self Assessment return each year.
Do non-residents get a personal allowance?
Many do, including British citizens and EEA nationals.
What happens if I sell my UK property?
You must report it within 60 days of completion, even if no tax is due.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.
