Overseas tax information
Non Resident Landlords
If you own a rental property in the UK but your usual home is outside of the UK, then you need to comply with the Non-Resident Landlords (NRL) scheme, which sets rules around how you pay tax. The scheme requires UK letting agents to deduct basic rate from any rent they collect for Non-Resident Landlords.
You can set this tax off against your own tax bill at the end of the year. However, Non-Resident Landlords can apply to the Inland Revenue for approval that will permit their letting agent NOT to deduct tax at source by completing the NRL1 form. Approval of a NRL1 does not mean that the rent is exempt from UK tax.
Of course, while we can offer basic advice when it comes to your rental income, we would always recommend that you seek advice from a professional.
For an informal chat about all things tax, please contact our financial friend Tony Mills at Ma2 Accountants on 01253 862220.