The Non-resident Landlord (NRL) Scheme is a special scheme for the UK
rental income of non-resident landlords. This includes companies or trustees whose '
usual place of abode' is outside the UK. HMRC classifies a person living abroad for 6 months or more per year, as a non-resident landlord. This is the case even if the person is a UK resident for tax purposes.
Generally, basic rate tax (currently 20%) must be deducted, after expenses, 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 rent 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.
If you need to speak to a member of our
Private Client Tax Team, about being a Non-resident Landlord and how you can apply for the scheme. We have a dedicated
team of advisers that can support you with advice about the Non-resident Landlord scheme and if it would benefit you.