If you live overseas and rent out a property in the UK, your rental income may fall within HMRC’s Non-resident Landlord Scheme (NRLS).
The scheme generally applies where a landlord’s usual place of abode is outside the UK. Where My Place Properties collects rent on behalf of a non-resident landlord, we are required to comply with HMRC’s Non-resident Landlord Scheme.
Receiving your rent
Unless HMRC has authorised us to pay your rental income without deducting tax, we may be required to deduct tax at the basic rate from the relevant rental income and account for this directly to HMRC.
Non-resident landlords can apply to HMRC for approval to receive their rental income without tax being deducted. For individual landlords, this is normally done using Form NRL1.
Once HMRC has issued the appropriate approval to us, we can pay the rental income without deducting tax under the scheme. This does not mean that the rental income is tax-free – the landlord remains responsible for meeting their own UK tax and Self Assessment obligations.
If you are an overseas landlord, please let us know when instructing us so that we can ensure the correct procedures are followed from the outset.
This information is provided as general guidance only and does not constitute tax or financial advice. Landlords should obtain advice from HMRC, an accountant or a suitably qualified tax adviser regarding their individual circumstances.
