Non-Resident Landlord Scheme — Tax on UK Rent From Abroad
How the NRL scheme withholds basic-rate tax through your agent or tenant, applying for gross payment, your real UK liability, deadlines, MTD and CGT.
The short answer
If you live outside the UK for more than six months a year, your UK rent falls under the Non-Resident Landlord Scheme. Your letting agent (or tenant paying over £100 a week with no agent) must deduct basic-rate tax (20%) from the rent and pay it to HMRC — unless HMRC approves you to receive rent gross (form NRL1). Either way you still file a UK return and get the personal allowance if you are a UK or EEA national.
The scheme is a collection mechanism, not an extra tax. Most overseas landlords should apply for gross payment on day one and settle the real liability through self assessment.
How it works
| Situation | What happens |
|---|---|
| You use a UK letting agent | Agent deducts 20% from rent after allowable expenses it has paid, pays HMRC quarterly, gives you an NRL6 certificate |
| No agent, tenant pays more than £100 a week | The tenant must deduct 20% and account to HMRC |
| HMRC approval to receive rent gross (NRL1) | No deduction; you pay through self assessment — approval needs a clean UK tax record |
| Joint owners abroad | Each owner applies separately (NRL1 each) |
| Company landlord abroad | Form NRL2; UK-property companies pay Corporation Tax |
Your actual tax
UK rental profit is taxed at UK rates — 20%/40%/45% (Scottish bands do not apply to non-residents) after the £12,570 personal allowance where you are entitled to it (UK, EEA and certain treaty nationals). Tax withheld under the scheme is credited on your return; excess is refunded. Mortgage interest is a 20% credit exactly as for residents.
Deadlines
- Agent/tenant: quarterly returns to HMRC by 30 June, 30 September, 31 December and 31 March; annual NRLY return by 5 July.
- You: self assessment by 31 January (online) — non-residents cannot use HMRC’s own online service for the residence pages (SA109) and typically use commercial software or an agent.
- MTD: non-resident landlords are inside Making Tax Digital on the same £50,000 gross test — overseas address is not an exemption.
Selling as a non-resident
Non-residents pay CGT on UK residential property — on the gain since 5 April 2015 (rebasing) or by time-apportionment — reported and paid within 60 days of completion even if no tax is due. Buying again as a non-resident adds the 2% non-resident SDLT surcharge on top of the 5% additional-dwelling surcharge.
Double tax
Your country of residence may also tax the rent; treaty relief or a foreign tax credit usually prevents double taxation, but the UK taxes UK land first under every treaty. Keep the NRL6 certificates — they are your proof of UK tax paid.
gov.uk Non-Resident Landlord Scheme guidance (agent/tenant deduction, NRL1/NRL2, quarterly returns); gov.uk CGT for non-residents on UK property (60-day return); SDLT non-resident surcharge; rates from our verified 2026/27 dataset. Checked 31 Aug 2026.
Quick answers
HMRC's system for collecting tax on UK rent paid to landlords living abroad: agents or tenants deduct basic-rate tax unless HMRC has approved gross payment via form NRL1.
UK and EEA nationals (and some treaty nationals) do — £12,570 in 2026/27. Claim it on the SA109 residence pages.
A tenant paying more than £100 a week must deduct 20% and pay it to HMRC quarterly, unless you have gross-payment approval.
Yes, on UK residential property — with rebasing to April 2015 available — reported within 60 days of completion regardless of whether tax is due.