The Non-Resident Landlord Scheme, step by step
If you live abroad for more than six months of the year, tax on your UK rent is taken by your agent or tenant unless HMRC lets you receive it in full. How the scheme works, form NRL1i, and what to send each year.
England. Checked against the law on 4 October 2026. Information, not legal advice.
Who it is for
The scheme is for landlords whose usual home is outside the UK, which for an individual means living abroad for more than six months of the year. It covers rent from any property in the UK. Companies and trustees have their own forms.
What happens if you do nothing
- With a letting agent: the agent must take basic rate tax (20%) off the rent, after the costs they paid for you, and pay it to HMRC every quarter. This applies however small the rent is. Anyone who collects your rent for you counts as an agent, even a friend.
- Without an agent: your tenant must take the tax off if the rent is more than £100 a week, and pay it to HMRC each quarter.
Each year the agent or tenant gives you a certificate (NRL6) showing the tax taken, so you can claim it against your tax bill.
Receiving the rent in full
Most landlords apply to receive the rent with no tax taken off and pay any tax through Self Assessment instead:
- Fill in form NRL1i (individuals) and send it to HMRC. You can apply as soon as you go abroad or before you let.
- If HMRC agrees, it writes to your agent or tenant and tells them to stop taking tax off. Until then, they must keep taking it.
- Each year, declare the rent in a Self Assessment tax return, by 31 January after the end of the tax year.
Keeping records
Keep every rent payment and every cost (repairs, agent fees, insurance, certificates) with its receipt. Mortgage interest is not taken off the rent; it gives a tax credit at the basic rate. Making Tax Digital for Income Tax applies to landlords from April 2026 above an income threshold; check whether it applies to you.
Tax where you live
The country you live in may tax the same rent. Most tax treaties give credit for UK tax, so you do not pay twice. Ask a tax adviser who knows both countries.
This guide is information, not tax advice. HMRC's own guidance is linked below.
Where this comes from
Questions landlords ask
What is form NRL1i?
The application an individual landlord who lives abroad sends HMRC to receive UK rent with no tax taken off. If HMRC agrees, you declare the rent in a Self Assessment tax return instead.
My tenant pays me directly. Do they have to take tax off?
Only if the rent is more than £100 a week and HMRC has not told them you may receive it in full. Below that, they pay you the full rent and you declare it yourself.
Is a friend who collects my rent a letting agent?
Yes, for this scheme. Anyone in the UK who receives your rent or controls where it goes counts as a letting agent and must take the tax off unless HMRC has approved you.
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