Tax advice for non-UK resident landlords with UK property

Yes. UK property income is taxable in the UK whatever your residence. As a non-resident individual you are generally taxed on your UK rental profit under the usual income tax rates, with any relief under a double tax treaty or credit in your home country considered separately. You are usually required to register for Self Assessment unless HMRC tells you otherwise.

It is the scheme under which a letting agent, or a tenant paying more than £100 a week where there is no agent, deducts basic-rate tax from your rent less allowable expenses and pays it to HMRC each quarter. You can apply to HMRC to receive rent gross if your UK tax affairs are up to date or you expect no UK tax liability.

You apply to HMRC's Non-Resident Landlord team using form NRL1 for individuals, NRL2 for companies or NRL3 for trustees, or online. HMRC approves if your UK tax affairs are up to date, you have no previous UK tax obligations, or you expect no UK income tax liability for the year. Late returns or payments can lead to a refusal.

HMRC treats you as a non-resident landlord if your usual place of abode is outside the UK, which in practice means living abroad for six months or more a year, even if you are technically UK tax resident. That can catch some people who think of themselves as UK resident. Check the position before the first tenant pays.

The basic rate, 20% in 2026/27, applied to rent less expenses the agent knows about. From 2027/28 the scheme will use the new property basic rate of 22%. The tax withheld is credited against your final liability, and if too much has been taken, you reclaim it via your tax return. Gross payment avoids the cash flow cost.

Some can. UK nationals, citizens of the European Economic Area, those who worked for the UK government and certain residents of countries with a tax treaty may qualify for the personal allowance against UK income. Others do not. The result significantly changes the rental tax, so check your status before relying on it.

Since 6 April 2020, non-UK resident companies pay corporation tax, not income tax, on UK property income. Tax under the NRL scheme can still be withheld and credited against the corporation tax. The company needs a UK tax registration and files a company tax return. Group and finance cost rules, including the corporate interest restriction, can apply.

Yes. Non-residents are charged on gains on UK residential property from 6 April 2015, and on non-residential property and indirect disposals of UK-land-rich entities from 6 April 2019. Rebasing to the April 2015 or April 2019 value is available in many cases, so only the growth since then is taxed. Rates are the same as for UK residents.

Within 60 days of completion, for every disposal of UK land or property, including commercial property and certain indirect disposals, and even where there is a loss or no tax to pay. A late return carries penalties. Non-resident companies deal with these gains under corporation tax but still have a reporting obligation.

It applies to residential purchases in England and Northern Ireland if you were not present in the UK for at least 183 days in the 12 months before the purchase. It is added to the usual rates and any higher rates surcharge, and has applied since 1 April 2021. A refund may be possible if you meet the presence test within the following year.

No. Since 6 April 2017, interests in close companies and partnerships are not excluded property to the extent their value comes from UK residential property. So wrapping a UK home in an offshore company does not take it out of the UK inheritance tax net. The structure may still be useful for other reasons, which we would test.

The Annual Tax on Enveloped Dwellings is an annual charge on companies and some other entities holding a UK dwelling worth over £500,000. For 2026/27 it ranges from £4,600 to £303,450, depending on value. Reliefs exist, for example for property rental businesses, but a return must still be filed. It applies regardless of where the company is based.

It depends on the tax in your country of residence, your plans for the property, your family and inheritance tax. A company changes how rent and gains are taxed and can add an ATED or SDLT cost, so it is rarely a simple saving. We take the UK view and work with your overseas adviser on the rest.

Apply to HMRC for gross payment under the NRL scheme before you go, tell your agent, and plan your residence position carefully, since it affects the CGT and the rest of your tax. Consider the 60-day rule on any planned sale and whether your property should be re-valued. Our [residency checker](/tools/residency-checker) is a good first step.

HMRC can charge tax, interest and penalties, with the time limits depending on whether the failure was careless or deliberate. A voluntary disclosure before HMRC contacts you normally reduces penalties significantly. Do not ignore it. We prepare the disclosure and handle contact with HMRC. See our HMRC Enquiries page for how this works.