NRL Tax Returns
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If you are a non-resident landlord owning a property in the UK. In that case, the rental income from your UK property will be taxable in the UK, subject to the availability of personal allowance for residents and citizens of certain countries.
As it can be difficult for HMRC to pursue overseas landlords for the tax due, UK tax law seeks to collect the tax on the rental income before it is paid under the Non-Resident Landlord Scheme (NRLS). Under this rule, the UK letting agent is required to deduct tax at the rate of 20% on the rental income before paying the non-resident landlords. So, for example, if the rent payable to the non-resident landlord is £1,000, the letting agent needs to deduct the tax at 20% of £200. The letting agent then pays £800 to the landlord and £200 to HMRC.
HMRC normally regards an absence from the UK of six months or more as a person having the usual place of abode outside the UK. However, it is possible that a person may be a resident for normal tax purposes but considered a non-resident under the Non-Resident Landlord Scheme.
The team at Goodmen Ltd has helped hundreds of non-resident landlords prepare and file their income tax returns. We understand the double taxation treaty, availability of personal allowance, and other peculiar issues concerning non-resident landlords to provide you with expert service. We also help you to register for the Non-Resident Landlord Scheme.