Non-resident landlord tax and reporting obligations in the UK

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Last edited time

Jan 18, 2023 6:25 PM

Facts:

Rent from UK property is taxable in UK like any other income where the source is UK. This happens in one of two ways:

tax is withold at the source by letting agent (property manager) or the tenant under Non-resident Landlord Scheme (NRLS)

in this case the non-resident landlord still need to file a self-assessment return, but won’t pay taxes because taxes have been deducted at source (if everything works as described)

Or tax is not witheld and UK rental income is received by the landlord without deduction of UK tax if this form has been submitted → Application to have UK rental income without deduction of UK tax - individuals (NRL1)

in this case the non resident landlord is responsible for filing the self-assessment return and paying the taxes themselves, because tax has not been deducted at source

Tax on your UK income if you live abroad

You usually have to pay tax on your UK income even if you're not a UK resident. Income includes things like: If you're eligible for a Personal Allowance you pay Income Tax on your income above that amount. Otherwise, you pay tax on all your income.

www.gov.uk

Tax on your UK income if you live abroad

Resources:

https://www.gov.uk/tax-uk-income-live-abroad