Rent out property in UK-rules for non-resident landlords – NRL1

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Rent out property in UK-rules for non-resident landlords – NRL1

Landlords and Buy to let, rent , rental income, non-resident - rules HMRC insist on.Are you non-resident for tax purposes, either because you live abroad or live in UK but work abroad, and rent out a place in the UK?

Do you own a property in the UK which you rent out?

Answer YES to both of these and this video ,which I filmed in Umbria, is for you – see below.

If you have a UK rental property and are non-resident for tax purposes then you face two stark choices:

  • You can declare the rents and expenses to HMRC each year, or
  • You can have basic rate tax (20% in 2015/16) deducted from the rents before you get them.

This latter point is quite painful and often means you will pay more UK tax.  This is because you cannot claim any expenses.  Also you do not get any Personal Allowance. (The amount of UK income a UK person can earn before tax, £10,600 in 2015/16.)


The law requires your letting agent to deduct this tax and pay it to HMRC.  If you do not have a letting agent then this onerous law means the TENANT must deduct the tax and pay it to HMRC!

If you prefer to declare your rents each year, then you can complete a tax return each year.  But first you must send HMRC form NRL1.

Huston & Co are specialists in tax for non-residents and have hundreds of British clients living or working abroad, many getting rent in the UK.  We can help you with all this.  We can complete the NRL1 form and also the annual tax returns, leaving you to enjoy life with a clear conscience. Directors Adrian Huston & Felicity Huston are both former Tax Inspectors.  This is a family firm with no outside staff.

Tax on rent – call us on +44 28 9080 6080, email (or desk for overseas work) or check out