As agents based in the UK, we pay rental income to landlords regularly, however, if the landlord is considered a 'non-resident' UK landlord, its the responsibility of the agent to ensure tax affairs have been put in place. This is actually quite straightforward, but here's what you would need to know.
Landlords need to pay tax on rental income if they rent out a property in the UK. A non-resident UK landlord defined by HM Revenue and Customs (HMRC) is:
Someone who lives abroad for 6 months or more per year, even if they’re a UK resident for tax purposes.
You can pay tax is one of two ways:
Option 1: in full and pay tax through Self Assessment - if HMRC allows you to do this
If you want to pay tax on your rental income through Self Assessment, you'll need to fill in the correct form below and send it back to HMRC by post.
NRL1i Form - For Individuals
NRL2i Form - For Companies
NRL3i Form - For Trusts and estates
If your application is approved, HMRC will tell us or tenant not to deduct tax from your rent and you’ll need to declare your income in your Self Assessment tax return. They will provide us with a your NRL number which we include with our report we send to HMRC each year disclosing what income we have transferred. Once we have this code, we are then allowed to transfer rent in full from the date stipulated by HMRC.
If you're already registered with HMRC as a non-resident UK landlord, you'll need to give them a call on 0300 051 6644 and provide them with our NRL Code to link us to your records.
Option 2: Get your rent with tax deducted
If we haven't been provided with a code from HMRC, we'll deduct basic rate tax from your rent (after allowing for any expenses we've paid). We'll give you a certificate at the end of the tax year saying how much tax we’ve deducted. Tax deducted will appear on your statement of account, and we'll pay HMRC on your behalf each quarter.
Companies & Trusts
A company is a ‘non-resident landlord’ if it receives income from renting UK property and either:
- its main office or business premises is outside the UK
- it’s incorporated outside the UK
Your company will get its rent in full if it’s resident in the UK for tax purposes - this includes UK branches of companies based abroad if they’re registered for Corporation Tax.
A trust is a ‘non-resident landlord’ if it receives income from renting UK property and all trustees usually live outside the UK.
For more information, visit https://www.gov.uk/tax-uk-income-live-abroad/rent