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Are you getting rental income from UK property while living overseas?
Non-Resident Landlord Scheme (NRLS) in the UK
For overseas landlords, tax is deducted at 20% by the letting agents or the tenant on behalf of HMRC. But NRLS enables you to get gross rental income, manage your own tax affairs, and improve your cash flow immensely.
At UK Property Accountants, we help right from initial NRLS application through to ongoing Self-Assessment and tax planning, we ensure your NRLS approval is both successful and maintained long-term.
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Your UK Rental Income, Our expertise
Why choose UKPA for NRLS?
At UK Property Accountants, we help you get approval under the scheme so tax payments can be deferred until your Self-Assessment, rather than being deducted every month. From initial approval to ongoing compliance, we make sure you meet HMRC requirements.
Non-Resident Tax Specialists
Our property tax experts have extensive experience with overseas landlords. We stay completely current with NRLS rules, double tax treaties, and international compliance requirements, so you get accurate advice that protects your earnings and keeps you tax compliant.
Comprehensive Service
From registering with the NRLS through to managing ongoing compliance, processing rental accounts and submitting annual tax returns, we do it all. From sorting out allowable expenses to liaising directly with letting agents, we do it all for you.
Tailored Support
We understand your circumstances are unique, whether you have one buy-to-let, more than one, or if they are held in a company. We adapt our approach to your needs, residence status, and income sources, and secure the optimal tax-efficient outcome.
Key Obligations
What do non-resident landlords need to do under the NRLS?
If you’re approved under the NRLS gross receipt application, you can receive your UK rental income without tax deducted at source, but you must stay fully compliant with HMRC’s rules.
Delay your UK Tax
What we offer
We provide end-to-end service ranging from initial application for gross payment approval and documentation through to regular tax returns, compliance monitoring, and foreign tax planning.
We file your Self-Assessment tax return on an annual basis, declaring UK rental profits and claiming all allowable expenses and reliefs. We calculate your tax liability, arrange payment arrangements, and monitor compliance with all deadlines to maintain your NRLS status.
We notify your letting agents of NRLS accreditation and facilitate making gross rent payments, organising reporting between agents and our office, and monitoring for compliance by agents with NRLS.
We minimise deductible expenses, maximise mortgage interest relief, plan for Capital Gains Tax on disposals, and utilise double tax treaty benefits to reduce withholding taxes and overall, UK tax liability.
It's Best to Be Sure
It’s best to be sure about your residency status and Self-Assessment Tax Returns so that you are not bothered by the tax authorities. So, why not use our exclusive forms below and guarantee compliance. They are free & easy to use.
Residency Status Checker Form
Non-Resident Landlord Scheme applies to, well, non-residents. But are you one? Use our residency status checker and be sure about your UK residency situation.
Non-Resident Landlord Self-Assessment Form
You are required to file a Self-Assessment Tax Return with HMRC if you earn rental income from properties in the UK. Fill out the form below to see how best to proceed.
Scenarios we deal with
NRLS for Every Type of Non-Resident Landlord
We've worked with non-resident landlords in various circumstances, from first-time overseas investors to established international property portfolios, and we're here to make the process of being a non-resident landlord clear to you.
New Non-Resident Landlords
"I've just moved abroad and started renting my UK home. How do I avoid the 20% tax deduction?"
We register you for Self-Assessment, prepare your NRLS application with supporting documentation, and ensure you receive gross rental income from day one of your non-resident status.
Returning UK Expats
"I left the UK years ago but never sorted out the tax properly. Can I still get NRLS approval?"
We review your tax history, bring your UK tax affairs up to date if there is any gaps, and then apply for NRLS approval with a clean compliance record.
International Property Investors
"I'm buying UK property as an investment from overseas. What's the best tax structure?"
We advise on ownership structure, NRLS vs. company ownership, help you understand the tax implications of both structures, and set up the most tax-efficient approach for your preference.
Non-Resident Company Directors
"I'm a director of a UK company having rental income but live abroad. Does this affect my NRLS application?"
We analyse your UK connections and residence status, ensure your NRLS application addresses any potential complications, and coordinate with your company's tax obligations.
Inherited Property Owners
"I've inherited UK property but live abroad. How do I deal with the rental income tax liabilities?"
We set out your inheritance tax position, apply for NRLS when necessary, and put in place permanent compliance structures for your inherited property income.
Students/Temporary Residents
I'm studying abroad temporarily and am renting my UK home. Am I eligible for NRLS?
We assess your residence status and plans and advise if NRLS is appropriate for temporary non-residence and help you to remain compliant while studying abroad.
Multiple Property Portfolio Owners
I have a few UK rental properties and live abroad. Can NRLS insure them all?
Yes. We submit NRLS covering your entire UK property portfolio, deal with several letting agents, and streamline your compliance across the board.
Joint Ownership with UK Residents
I share ownership of a property with someone living in the UK. How does NRLS work?
We apply for NRLS on your share only, handle the UK resident co-owner tax obligations separately, and ensure both parties stay fully compliant.
Our Process
How We Work
Our work is centred around efficiency, collaboration, and delivering exceptional results to our clients.
Initial Discovery Call
We start with a straightforward process. Answer a few simple questions to help us understand your circumstances. It’s hassle-free, quick and designed to save you time.
Data Gathering and Analysis
Once we have the details, our team of experienced accountants gets to work. You can trust us to manage the complexities and ensure everything is accurate and compliant.
Thorough Review & Timely Submission
We conduct a meticulous review to ensure accuracy, compliance, and completeness in every submission. Our streamlined process guarantees timely submissions, so you never miss a deadline.
Ongoing Support
Our commitment extends beyond accounting and tax advisory work. We provide ongoing support, including tax planning and addressing accounting queries throughout the year.
Related Services
Our Comprehensive Services
We are committed to helping you achieve financial prosperity while optimising your tax position in the most effective and efficient way possible.
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Latest News & Articles
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FAQs
General queries by our clients related to Non Resident Landlord Return are answered here.
The Non-Resident Landlord Scheme (NRLS) is a tax system established by HM Revenue & Customs (HMRC) for individuals who rent out property in the UK but live abroad Under the scheme, tenants or letting agents are required to deduct basic-rate tax (currently 20%) from the landlord’s rent payments before they are transferred to the landlord. This deduction is then paid directly to HMRC. The scheme ensures that non-resident landlords comply with their tax obligations in the UK.
Non-resident landlords who want to receive rental income without tax deductions must apply for approval from HMRC. To apply, you need to register with HMRC by submitting appropriate form.
- NRL1 for individuals
- NRL2 for companies
- NRL3 for trustees (including corporate trustees)
This can be done online via the HMRC website or by completing a paper form. You will need to provide details about your rental property, your identity, and your tax status. Once approved, you can receive your rental payments gross (without tax deductions).
To be eligible for the NRLS, you must meet the following criteria:
- You must have UK rental income
- Your usual place of abode must be outside the UK
- You must not be liable to UK Income Tax on the rental income under any other provision of the Income Tax Acts
If you are a non-resident landlord (living outside the UK) and you rent out property in the UK, your rental income is subject to tax in the UK. Normally, if you are a non-resident landlord, the tax is deducted at source by a letting agent before you receive your rental income. However, if you want to receive the rental income without tax deductions, you must apply for approval from HMRC under the Non-Resident Landlord Scheme.
How it Affects Your Rental Income:
Without NRLS Approval: If you haven’t been approved under the NRLS, the letting agent or tenant will deduct tax (usually at 20%) from your rental income and pay it directly to HMRC.
With NRLS Approval: If HMRC approves you, you can receive the full rental income without any tax deductions. You must, however, handle your tax obligations through self-assessment and pay the tax due directly to HMRC.
If you don’t register for the NRLS, your UK rental income could be taxed at a higher rate. When registered, your letting agent or tenant will only need to deduct 20% tax from your rent, and you won’t need to report that income in your self-assessment. Not registering could also lead to penalties and interest charges from HMRC. To avoid paying extra tax and stay compliant with UK tax rules, it's important to register for the scheme.
Have more questions? Check out our Complete Guide for everything you need to know about Non Resident Landlord Return in one place.
UK Property Accountants is a leading firm of chartered certified accountants and chartered tax advisers specialising in the property and real estate sector with head office in Central London.
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