| Who is a non-resident landlord? | anyone living abroad for 6 months or more a year |
| Tax deduction | agents always, tenants from £100 rent a week, at the basic rate |
| Rent without deduction | form NRL1i to HMRC, then a tax return |
| Rates 2026/27 | 20, 40 and 45 percent; £12,570 personal allowance for EEA nationals |
| From 6 April 2027 | 24, 44 and 49 percent on property income (announced, Finance Bill 2026-27) |
| Home country | exempts or credits under its treaty with the UK |
| Updated | November 2026 |
Who counts as a non-resident landlord
HMRC treats you as a non-resident landlord if you live abroad for 6 months or more a year and receive rent from UK property. That can apply even if you are UK tax resident; what counts here is where you live, not the residence test. If you own the property jointly, your own share of the rent counts.
Rent means not just the monthly rent of a flat but also, for example, money for the use of furniture or for letting land. Companies have their own rules: a foreign company letting in the UK has paid UK corporation tax on the profit since 6 April 2020, and the scheme still applies.
How the deduction works
The scheme makes sure HMRC gets its tax even when the landlord is far away. So agents and tenants carry the duty.
- 1
Who must deduct
An agent collecting rent for you must always operate the scheme, whatever the rent. Without an agent, the tenant must deduct if paying more than £100 rent a week.
- 2
How much is deducted
Rent for the quarter is added up, the costs the agent or tenant paid on your behalf are deducted, and the rest is multiplied by the basic rate of income tax, currently 20 percent.
- 3
Payment to HMRC
The tax deducted goes to HMRC within 30 days of each quarter end: 30 June, 30 September, 31 December and 31 March.
- 4
Annual return and certificate
By 5 July the agent or tenant reports the year to HMRC on form NRLY and gives you certificate NRL6 for the tax deducted. You need it for your return.
Rent without deduction: the NRL1 application
You can apply to receive the rent in full and pay the tax through your annual Self Assessment return instead. The form for individuals is NRL1i, for companies NRL2i, for trusts NRL3i. If HMRC approves, your agent or tenant is told to stop deducting.
The condition: your UK tax affairs must be in order. If you are behind with returns or payments, you will not get approval. The advantage is obvious: you pay once a year on the real profit, after all costs and the allowance, rather than 20 percent of the net rent every quarter.
The tax return: allowance, costs, interest
You declare rental income in a Self Assessment return unless HMRC tells you expressly that you do not need one. As a non-resident you cannot use HMRC's own online service for this: you file on paper, with a 31 October deadline, or through commercial software, or through an adviser. The return includes the residence pages (SA109) and the property pages (SA105).
EEA nationals get the £12,570 personal allowance, but must claim it each year. Whether others get it depends on their nationality and their country's treaty with the UK. Above it the normal 2026/27 rates apply: 20 percent up to £50,270, 40 percent up to £125,140 and 45 percent above. If your rent is below the allowance and tax was deducted anyway, you reclaim it on form R43.
You can deduct running costs such as repairs and maintenance, insurance, agent's fees and council tax, water, gas and electricity if you pay them. Improvements that add value (capital expenditure) are not deductible. For mortgage interest, since 6 April 2020 it does not reduce rental income; instead you get a tax reduction at the basic rate, currently 20 percent of the finance costs. For landlords paying 40 or 45 percent that is noticeably less than it used to be.
In the Budget of 28 October 2026 the government announced that property income will have its own rates from the 2027/28 tax year: 24 percent, 44 percent and 49 percent. Budget 2025 announced two points above today's rates; Budget 2026 adds two more. The rates are to apply in England, Wales and Northern Ireland; Scotland and Wales get powers to set their own. It becomes law with the Finance Bill 2026-27, which has not yet passed. The deduction rate under the Non-Resident Landlord Scheme is also to follow the new basic rate for property income.
And at home?
The UK's tax treaties follow the same principle for property: income from immovable property may be taxed in the country where the property lies. So the UK taxes first. What your country of residence does next varies.
Some countries exempt the UK rent but take it into account for the rate on your other income; others tax it and credit the UK tax, up to their own tax on that income. Either way you usually declare the rent at home as well. Which method applies is in your country's treaty with the UK and its own law; the principles are in the UK's tax treaties.
Frequently asked questions about letting from abroad
Does my tenant have to deduct tax from the rent?
Only if you have no agent and the tenant pays more than £100 a week. An agent must always deduct unless HMRC has approved otherwise.
How do I get the rent without deduction?
With form NRL1i to HMRC. Your UK returns and payments must be up to date. After that you pay through your annual return.
What changes for landlords in 2027?
From 6 April 2027 property income is to be taxed at 24, 44 or 49 percent instead of 20, 40 or 45 percent. That is announced and is to become law with the Finance Bill 2026-27.
Will I be taxed again at home?
That depends on your country's treaty with the UK and its own law: either it exempts the rent, often taking it into account for your rate, or it taxes it and credits the UK tax.
What happens if I sell the flat?
You must report the sale to HMRC within 60 days, even if no tax is due. Details in selling UK property.
Sources: HMRC: Paying tax on rent to landlords abroad; GOV.UK: Tax on your UK income if you live abroad; HMRC: Work out your rental income; HMRC: Tax relief for residential landlords (finance costs); GOV.UK: Income Tax rates and Personal Allowances; HM Treasury: Budget 2026, Overview of tax legislation and rates; HMRC: Income Tax, changes to tax rates for property, savings and dividend income (Budget 2025)
