Non-resident landlord tax return - UK Landlord Tax (2024)

Income from a property in the UK is usually taxed in the UK wherever you reside.

However, depending on your nationality and country of residence you may be entitled to the UK personal tax allowance which is £12,570 for 2021/22 to 2025/26. If you are a British national you are automatically entitled to the UK personal tax allowance, which means no tax would be payable in the UK on rental profits of less than £12,570 (provided that you have no other UK income).

If you are not a British national there are double taxation treaties with EU and some other countries which also entitle you to claim the UK personal tax allowance. Please get in touch and we will be happy to confirm whether you are entitled to the UK tax allowance.

Tenants or letting agents have a responsibility to deduct basic rate tax from any rent paid to non-resident landlords. If you wish to continue receiving UK rental income gross whilst you are non-resident, you should submit Form NRL1 to the HMRC Centre for Non-Residents.

HMRC should then grant approval for rents to be paid to you gross and notify the tenant or agent as appropriate. Your rental profits will still remain taxable in the UK but this will help with cash-flow.

Do you need to file a tax return?

If any of the following apply then you may be required to complete a tax return:

• If you are in receipt of UK rental income
• If you are a director of a UK company
• If you earn an income in the UK from self employment
• If you do not live in the UK, but you do some or all of your work in the UK
• If you receive profits from a UK partnership
• If you make capital gains from the sale or disposal of assets in the UK

Non-resident tax rules can be quite complex. If you are in any doubt then get in touch.

Are You Leaving The UK Permanently?

From 6th April 2013 there is The Statutory Residence Test.

Please see our article on this hereAre you leaving the UK permanently