Plenty of people let a flat in London, Liverpool or Manchester while living abroad. The UK still taxes the rent, and HMRC collects it through the Non Resident Landlord Scheme. If you own from abroad, the scheme decides who handles the tax on your rent and when you receive it.
Who counts as a non resident landlord
For the scheme, HMRC looks at where you usually live, not your tax residence. Its guidance treats an individual landlord who lives abroad for more than six months of the year as a non resident landlord, and GOV.UK notes that you can fall within the scheme even if you are UK resident for tax purposes. Companies and trustees are judged on where their usual place of abode is. Where a property is jointly owned, the rules apply to each owner's share separately.
Who deducts the tax
The scheme places the job on whoever pays your rent out of the UK:
- A letting agent must operate it whatever the rent, unless HMRC has told them in writing that you can be paid without deduction. HMRC's definition of an agent is wide: anyone who helps run the letting and receives the rent or controls where it goes, which can include a friend or relative.
- Where there is no agent, a tenant paying more than £100 a week in rent must operate it.
- Agents and tenants register with HMRC to do this. Agents use form NRL4.
The calculation is done every quarter. The agent or tenant adds up the rent received, takes off allowable expenses they have paid, such as a repair bill, and deducts basic rate income tax on what is left. For the 2026 to 2027 tax year that rate is 20%. The tax is paid to HMRC within 30 days of each quarter end (30 June, 30 September, 31 December and 31 March). By 5 July each year they send HMRC an annual return on form NRLY and give you a certificate, NRL6, showing the tax taken.
Receiving your rent in full
You can ask HMRC to let your agent or tenant pay you without deduction. Individuals apply on form NRL1, companies on NRL2 and trustees on NRL3, online or by post. According to HMRC's Property Income Manual, approval is available if your UK tax affairs are up to date, if you have had no UK tax obligations before applying, or if you do not expect to be liable to UK income tax for the year you apply. If HMRC approves, it writes to your agent or tenant to tell them to stop deducting.
Approval is not an exemption from tax. It changes how the tax is paid: you declare the rental income on a Self Assessment return and pay any tax through it. HMRC can refuse an application, or withdraw approval later, if it is not satisfied that you will meet your UK tax obligations. You can appeal a refusal in writing within 90 days.
Tax taken and the Personal Allowance
Unless HMRC tells you otherwise, rental income still goes on a Self Assessment return, and any tax deducted under the scheme counts towards your bill. Not every non resident is entitled to the UK Personal Allowance. If you are, and your rental income is below it, GOV.UK explains that you can claim back tax deducted using form R43.
A rate change in April 2027
From 6 April 2027, the government is introducing separate income tax rates for property income in England, Wales and Northern Ireland: 22% at the basic rate, 42% at the higher rate and 47% at the additional rate. Its policy paper says the withholding rate for the Non Resident Landlord Scheme will be updated through secondary legislation to reflect the new basic rate.
The rest of the rules still apply
Living abroad does not change your duties as a landlord. Gas safety, electrical checks, deposit protection and the Renters' Rights Act rules in England apply in exactly the same way. Our Renters' Rights Act guide covers what changed on 1 May 2026.
Where we fit
We work with landlords who live overseas, and at the start of any arrangement we ask where you live and explain how the scheme applies to it. With property management we run the letting day to day and keep the paperwork in order. With guaranteed rent you receive an agreed sum each month for the term. Read more about how we work with overseas landlords, or use our rent calculator and a property manager will come back to you with a figure. For your own tax position, speak to a qualified tax adviser.
Sources: GOV.UK, Paying tax on rent to landlords abroad; GOV.UK, Tax on your UK income if you live abroad: rent; GOV.UK, Non-resident landlord application to have UK rental income without deduction of UK tax (NRL1); HMRC Property Income Manual, PIM4860: application to receive UK rent gross; GOV.UK, Income Tax rates and Personal Allowances; GOV.UK policy paper, Income Tax: changes to tax rates for property, savings and dividend income.
