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HMRC internal manual

International Manual

HM Revenue & Customs
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The Non-resident Landlords Scheme: Non-resident landlords


For the purposes of the Scheme, non-resident landlords are persons (including individuals, companies and trustees) who have

  • UK rental income, and
  • a ‘usual place of abode outside the UK’.

Although we refer to ‘non-resident’ landlords, it is usual place of abode and not non-residence that determines whether a landlord is within the Scheme or not. INTM370060 gives more information about usual place of abode.

The non-resident landlord’s tax liability

Non-resident landlords can set off the tax deducted from their UK rental income under the Scheme against their own tax bill when they complete their UK Self Assessment tax return. They can also claim repayment of any excess tax deducted from their UK rental income.

The tax deducted by the letting agent or tenant is unlikely to be equal to the landlord’s liability because the rules of the NRL Scheme are different from the rules for calculating the landlord’s tax liability.

Facility for gross payment of rent

Non-resident landlords can apply to have their UK rent paid gross. INTM370070 gives details. Our approval of applications does not mean that the non-resident landlords’ UK rent becomes exempt income in their hands. They must determine their liability, if any, to UK tax on the rent through self assessment at the end of the year.