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Non-resident landlord tax and reporting obligations in the UK

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Real Estate Resource
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ArticleUK
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

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