How are landlords who live abroad taxed on UK property?
The Non-Resident Landlord Scheme taxes UK rent paid to landlords who usually live abroad. Letting agents, or tenants paying more than £100 a week, must deduct basic rate tax from the rent unless HMRC has approved the landlord to receive it gross. Non-residents who sell UK property must report within 60 days.
Read more in our guide: Capital Gains Tax on rental property
Non-resident landlords at a glance
| Rule | Position |
|---|---|
| Who it covers | Landlords whose usual place of abode is outside the UK |
| Who deducts tax | Letting agent, or tenant if rent exceeds £100 a week |
| Receiving rent gross | Apply to HMRC (form NRL1 for individuals) |
| Selling | Non-resident CGT return within 60 days, even with no tax due |
| Companies | Non-resident company landlords pay Corporation Tax |
How the scheme works
The scheme is about collecting tax, not a separate tax. The agent or tenant deducts tax at the basic rate from the rent less allowable expenses, pays it to HMRC quarterly, and gives the landlord a certificate each year. The landlord then files a Self Assessment return and claims credit for the tax deducted.
Landlords who are up to date with their UK tax can apply to receive rent without deduction. Approval does not remove the tax; it is simply paid through the return instead.
Selling as a non-resident
Non-residents have paid UK CGT on residential property since April 2015 and on all UK land since April 2019. The sale must be reported online within 60 days of completion even if there is a loss or no tax to pay. Property held before 6 April 2015 can usually be rebased to its value at that date, so only later growth is taxed. See CGT 60-day reporting.
Practical points for a sale
- Identity and source of funds checks take longer from abroad; see KYC checks.
- Signing documents abroad may need witnesses or a power of attorney.
- Your country of residence may also tax the gain; a double tax treaty usually gives credit for UK tax.
Official Sources and Further Reading
- GOV.UK: paying tax on rent from UK property if you live abroad
- GOV.UK: tell HMRC and pay Capital Gains Tax on UK property if you live abroad
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
The Non-Resident Landlord Scheme taxes UK rent paid to landlords who usually live abroad. Letting agents, or tenants paying more than £100 a week, must deduct basic rate tax from the rent unless HMRC has approved the landlord to receive it gross. Non-residents who sell UK property must report within 60 days.
It applies if your usual place of abode is outside the UK. Absences of under 6 months are not normally treated as living abroad.
Non-residents can generally use the same reliefs and expenses as UK landlords when working out their taxable rent.
No. The 2% non-resident Stamp Duty surcharge applies to non-resident buyers, not to sellers.
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