Non-Resident Landlords Scheme
The Non-Resident Landlord (NRL) Scheme is a special scheme for the UK rental income of non-resident landlords. This includes companies or trustees whose ‘usual place of abode’ is outside the UK.
As a general rule, basic rate tax (currently 20%) must be deducted from the rent payable to a non-resident landlord either by the letting agent or where there is no letting agent by the tenants (unless the rent is minimal) and the tax paid over to HMRC within 30 days of the end of each tax quarter.
By using the NRL scheme a non-resident landlord can apply for approval from HMRC to have any rents paid with no tax deducted. HMRC can refuse an application if it is not satisfied that the information provided by a non-resident landlord is correct or where there are concerns that the landlord will not properly comply with their UK tax obligations.
A letting agent must operate the NRL scheme unless they have received confirmation in writing from HMRC that the landlord can receive the rent with no tax deducted. If the letting agent is required to deduct tax, they must also send an annual report to HMRC and provide the landlord with a NRL6 certificate (by 5 July each year) showing the amount of tax deducted.