Tax obligations for non-resident landlords

What is the NRL Scheme?

If your usual home is outside the UK, you're a non-resident landlord. Under HMRC's Non-Resident Landlord (NRL) Scheme, your letting agent or tenant must deduct basic rate tax (20%) from your rent and pay it to HMRC — unless you've applied to receive rent gross.

Receiving rent without tax deducted

You can apply to HMRC (form NRL1) to receive your rent without tax deducted. This is usually approved if your UK tax affairs are up to date. You'll still need to file a self-assessment tax return.

Self-assessment

Non-resident landlords must file a UK self-assessment return (including SA105 for property income) and pay any tax owed. Tendmere's SA105 reports categorise your income and expenses correctly, making your return straightforward.

Making Tax Digital

MTD can apply to non-resident landlords with qualifying income over the threshold. Tendmere prepares digital records and quarterly review packs from anywhere with an internet connection; production HMRC submission remains approval-gated.

Allowable expenses

Non-resident landlords can claim the same allowable expenses as UK-based landlords: agent fees, insurance, repairs, travel to the property, and more. Tendmere's expense tracker is pre-configured with all SA105 categories.