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Overseas Landlord

If you live outside the UK for 6 months or more and own a rental property in the UK, you will be classed as an Overseas Landlord and will need to comply with the Non-Resident Landlords (NRL) scheme – this has rules about how you pay tax.

This scheme requires UK letting agents such as Goodfellows, to deduct basic rate (20%) tax from the rent they collect for non-resident landlords.  You will be able to set this off against your tax bill at the end of each year.

If a property is jointly owned, each person must pay tax – the income and expenditure is equally divided between the parties.  A Non-Resident Landlord may complete an NRL1 form to ask the Inland Revenue not to deduct tax at source – but be aware that approval of this will not mean that the rent is exempt from UK tax.