Non-Resident Landlords Scheme

Image by Alexandre Rotenberg via canva.com

Non-Resident Landlords Scheme United Kingdom

The Non-Resident Landlord (NRL) Scheme is a special scheme for the UK rental income of non-resident landlords.

Non-Resident Landlords Scheme

Image by Alexandre Rotenberg via canva.com

This includes companies or trustees whose ‘usual place of abode’ is outside the UK.

Generally, basic rate tax (currently 20%) must be deducted from the rent payable to a non-resident landlord either by the letting agent or where there is no letting agent by the tenants (unless the rent is minimal) and the tax paid over to HMRC within 30 days of the end of each tax quarter.

By using the NRL scheme a non-resident landlord can apply for approval from HMRC to have any rents paid with no tax deducted. HMRC can refuse an application if it is not satisfied that the information provided by a non-resident landlord is correct or where there are concerns that the landlord will not properly comply with their UK tax obligations.

HMRC no longer send copies of the non-residents landlord scheme annual return form by post. Instead, the form known as the Annual Information Return (NRLY) is available on GOV.UK and should be submitted online or sent by post if online submission is not an option. The annual return for 2017-18 is due to be submitted by 5 July 2018.

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