Under the Non-Resident Landlord (NRL) scheme, non-UK resident landlords have the tax on their UK rentals collected by their UK letting agent or tenant.

Subscribers see your detailed guide: Non-Resident Landlord scheme

The agent or tenant is required to deduct basic rate tax from rental income before it is passed on to the non-resident landlord.

  • Tax and rents are reported annually to HMRC on the NRL scheme annual return.
  • The form is completed even if no tax is deducted.
  • It must be filed by 5 July following the end of the tax year.
  • The agent or tenant provides the NRL with an annual tax certificate by 5 July each year.
  • NRLs may apply to HMRC to have their income paid gross if they are not liable to UK tax.
  • Tenants do not have to operate the scheme if they pay rent of £100 or less unless HMRC requests them to do so.
  • The annual return form is available online.

What's new?

Change to Corporation Tax

From 6 April 2020, non-resident companies under the scheme will be charged to Corporation Tax (CT) instead of income tax on their UK property income.

  • The corporate interest and loss rules are applied in the same way to UK and non-UK resident companies.
  • Non-resident companies are required to register for CT and prepare and file CT returns and accounts accordingly.
  • There are transitional rules to ensure that no profits fall out of account or are doubly taxed and to deal with losses.

A non-resident company will not be required to register for CT and file a CT return for an accounting period if:

  • Its liability to CT is fully offset by tax deducted under the non-resident landlord scheme.
  • It has no chargeable gains for the period.

Non-resident UK property gains

From 6 April 2019

Annual Tax on Enveloped Dwellings (ATED)

  • ATED-CGT is abolished from 6 April 2019. 

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