Property tax: Non-resident landlords scheme

The Non-Resident Landlord’s (NRL) scheme for UK tax compliance Introduction

The NRL scheme is a scheme for tax compliance relating to the rental income deriving from properties in the UK belonging to non-resident landlords whether they are individuals, companies or trusts. A non-resident landlord is one whose usual place of abode is outside the UK (anyone who leaves the UK for more than 6 months or who is normally non-resident in the UK for tax purposes). The scheme requires UK letting agents to deduct basic rate tax from any rents they collect. If there are no UK letting agents, then the onus is on the tenants to deduct the tax. When working out the amount to tax, letting agents or tenants may deduct allowable expenses.

Receive rentals without withholding Letting agents or tenants do not have to deduct withholding tax if the Inland Revenue issues a ruling that this withholding will not be necessary. Even though the rents may be obtained gross at source, they still remain subject to UK tax. Therefore, non-resident landlords still have to file UK tax returns. RKG Consulting can assist you or your clients in obtaining a ruling to receive rents “gross” and also RKG can prepare the required tax returns and help you in all UK tax compliance matters.

To receive a “gross” rents ruling

Certain forms must be completed and filed with the Inland Revenue within strict deadlines.

Other tax compliance

Tax Returns for landlords who are individuals, companies and trusts must be filed and any tax due on the excess of rental income over deductible lettings expenses must be paid within strict deadlines. Letting agents must submit form NRLY (Annual return) showing details of rent received from each non-resident landlord. Adequate records must be kept to satisfy the Inland Revenue auditors that all compliance obligations under this scheme have been met.

RKG Consulting Limited can assist you with preparation of the Tax Returns and in all tax compliance matters under the scheme.

RKG Consulting provides tax, immigration and accounting solutions. Our principal adviser is a "Chartered Tax Adviser" and is also an OISC-licensed immigration practitioner. We can provide a seamless service incorporating both tax and immigration solutions. If you have any queries, please feel free to contact us by telephone: +44 77 66 828 851
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