Non-resident landlords: NRL1 and tax deducted (UK)
Last updated 27 Oct 2026
If you live abroad and let out UK property, your letting agent or tenant must deduct basic rate income tax from your rent unless HMRC has approved you to receive it in full by form NRL1. It is an HMRC scheme for UK rental income, run the same way whichever part of the UK the property is in, as far as GOV.UK's guidance shows.
Who counts as a non-resident landlord
GOV.UK says you are classed as a "non-resident landlord" if you live abroad for 6 months or more a year, even if you are a UK tax resident. HMRC's Property Income Manual says the scheme turns on a landlord's "usual place of abode" being outside the UK, which has no statutory definition, and that HMRC applies it to landlords living abroad for more than six months, or expected to.
GOV.UK's non-resident landlord page also covers:
- Companies: a company that receives UK rent and has its main office abroad or was incorporated abroad.
- Trusts: a trust whose trustees all usually live outside the UK.
Each partner in a partnership is treated as a separate landlord (PIM4810).
What gets deducted, and by whom
| Who pays your rent | Must deduct basic rate tax? | Source |
|---|---|---|
| A letting agent | Yes, "no matter how much rent you collect", unless HMRC has told them in writing not to | GOV.UK guidance on paying tax on rent |
| A tenant, with no agent | Yes, if the rent is over £100 a week; under that, only if HMRC instructs them | GOV.UK guidance; PIM4810 |
| Anyone, if HMRC has approved your NRL1 | No, from the date on HMRC's notice | NRL1 page, GOV.UK |
The tax is calculated by multiplying the net rent by the basic rate of Income Tax. An agent works from rent less allowable expenses they have paid; a tenant deducts it from the rent paid. PIM4810 says there is no £100 a week exemption for rent paid through a letting agent.
What agents and tenants must send HMRC
GOV.UK's guidance for those paying the rent sets these dates:
- Quarterly: pay the tax within 30 days of each tax quarter end. The quarters end on 30 June, 30 September, 31 December and 31 March. PIM4810 says no return is needed for a quarter with no tax due, unless HMRC issues a notice.
- Yearly: send a report, form NRLY, to HMRC and the landlord by 5 July each year.
- Certificate: give the landlord certificate NRL6 by 5 July each year.
Tenants who are told they can pay gross still have to register and complete an annual report, according to GOV.UK. Agents must file even if all their landlords are approved to receive rent gross (PIM4810). GOV.UK's record keeping page for the scheme says to keep records for the last 6 tax years if possible, though auditors are unlikely to ask for more than 4.
How to apply to receive rent in full (NRL1)
NRL1 is the form for an individual who wants UK rental income paid with no UK tax deducted. GOV.UK lists separate forms for companies (NRL2) and trusts (NRL3).
- Apply to HMRC. You can complete it online or on paper; the paper form must be signed by the landlord. If you use a tax agent, GOV.UK says to send form 64-8 with the printed NRL1.
- Give your details. These include your principal residential address and, if you have them, your Unique Taxpayer Reference, National Insurance number and any agent reference.
- Wait for the notice. If HMRC approves, it sends a notice of approval to you or your agent, and separate notices to the agents or tenants you named. These give the date rent can be paid without deduction, usually the first day of the quarter in which HMRC received the application.
- Expect later checks. Approval follows an initial check, and a more detailed check may follow. Failing to provide information HMRC asks for may lead to approval being withdrawn.
GOV.UK says HMRC will not approve your application if your taxes are not up to date, such as late returns or payments. The NRL1 page says HMRC will normally approve if the form is complete and HMRC is satisfied you will follow all your UK tax obligations.
You still declare the income
Approval changes who collects the tax; it does not remove your own tax duties. GOV.UK says you must declare rental income on a Self Assessment return unless HMRC tells you otherwise, using the SA105 property pages and the SA109 residence pages. It says HMRC's online services cannot be used for this, so you post the return, use commercial software or get professional help.
Where tax was deducted, it can be set against your own bill. If your rental income is below your Personal Allowance and basic rate tax was deducted, GOV.UK says you can claim a refund on form R43. Paper returns are due earlier, by 31 October. See landlord allowable expenses and Making Tax Digital for landlords.
Frequently asked questions
What is the Non-resident Landlord Scheme? It is an HMRC scheme under which a letting agent or tenant deducts basic rate tax from the rent of a landlord who lives abroad, unless HMRC has approved the landlord to receive it in full.
Who is a non-resident landlord for the scheme? A landlord whose usual place of abode is outside the UK. HMRC applies this to landlords living abroad for more than six months, or expected to.
What is NRL1? It is the HMRC form for an individual non-resident landlord to apply to receive UK rent with no tax deducted.
Does my tenant have to deduct tax? If you have no agent and the rent is over £100 a week, yes, unless HMRC has approved you to receive rent in full. Rent paid through an agent has no £100 limit.
Do I still file a tax return if my tenant deducts tax? Yes. GOV.UK says you must declare rental income on a Self Assessment return unless HMRC tells you otherwise.
Can I get the tax back? You can set the tax deducted against your own bill. If your rental income is below your Personal Allowance, GOV.UK says you can claim a refund on form R43.
Records and reminders with Letbook
Letbook is a compliance tracker for landlords in all four UK nations. It tracks safety certificates and tenancy dates per property. It does not run the Non-resident Landlord Scheme, deduct tax or file HMRC returns, so talk to your agent or an accountant about those. See also what records to keep. Sign up free.
Sources
- Tax on UK income if you live abroad: rent, GOV.UK
- Paying tax on rent on behalf of landlords who are abroad, GOV.UK
- Non-resident landlord: application to have UK rental income without deduction of UK tax, individuals (NRL1), GOV.UK
- PIM4810 Overseas landlords: summary of the Non-resident Landlords Scheme, HMRC Property Income Manual, GOV.UK
- Record keeping for the Non-resident Landlords Scheme, GOV.UK
Facts checked on 27 October 2026. The GOV.UK guidance for agents and tenants shows no revision date, so HMRC may change forms or thresholds; confirm them on the pages above before you act. This page is general information, not legal advice.