Reviewed: 9 October 2026 | Applies to: landlords with UK rental income whose usual place of abode may be outside the UK. This guide is general information, not personal tax, legal, residency or treaty advice.
The Non-resident Landlords Scheme (NRLS) is HMRC’s collection system for UK rental income where a landlord’s usual place of abode is outside the UK. Unless HMRC has given the landlord approval to receive rent without tax deducted, a letting agent-or in some cases the tenant-may have to deduct tax at the basic rate from the rent they handle and account for it to HMRC. The scheme does not by itself decide a landlord’s UK tax residence, final tax bill or treaty position.
What is the Non-resident Landlords Scheme?
The NRLS applies to UK rental income when the landlord’s usual place of abode is outside the UK. HMRC’s scheme guidance describes it as a way of collecting tax from UK rental income in that situation. It is not a separate tax on owning a UK rental property, and it is not a substitute for working out the landlord’s wider UK tax obligations.
The key practical effect is usually on the person who pays or handles the rent. A UK letting agent that collects rent for a landlord within the scheme generally has to operate the NRLS, unless HMRC has confirmed that the landlord may receive the rent without tax deducted. If there is no letting agent, a tenant can have a role instead. HMRC’s detailed rules determine when that happens, including an exception for some tenants paying rent of no more than £100 a week unless HMRC tells them to operate the scheme.
That division is important: a letting agent or qualifying tenant may have withholding and reporting duties, while the landlord remains responsible for their own tax affairs. Do not assume that tax deducted under the scheme is automatically the final amount due.
Who can fall within the scheme?
For the NRLS, the question is whether the landlord’s usual place of abode is outside the UK. That may overlap with tax residence, but it is not the same test. A person can be UK tax resident yet be within the NRLS for a period, or have a different result under the scheme from the result they expect from a general “non-resident” label.
HMRC’s Property Income Manual says that UK property income is taxable in the UK even if its owner is not UK resident. It also explains that HMRC generally treats a landlord who is outside the UK for more than six months, or expected to be outside for more than six months, as falling within the scheme. That is a useful practical indicator, not a replacement for HMRC’s rules or advice on an individual’s facts.
If a move abroad is temporary, involves more than one country, or raises questions about tax residence, domicile, double-tax agreements or a change in ownership, get suitably qualified advice. This page does not determine those issues.
What happens before HMRC approves gross payment?
Where the scheme is being operated, a letting agent normally deducts tax at the basic rate from the net rent it handles after permitted deductible expenses. A qualifying tenant who must operate the scheme can have similar duties. The official guide for agents and tenants explains the detailed calculation, records, returns, payment dates and annual certificates.
For landlords, the practical point is that rent may arrive net of deductions until HMRC authorises payment without deduction. Keep the statements and certificates provided by the agent or tenant. They can matter when preparing a return or checking the tax position.
Agents and tenants have their own deadlines and forms. For example, HMRC says that tax due under the scheme is normally paid within 30 days of the end of each quarter ending 30 June, 30 September, 31 December and 31 March; its agent/tenant guidance sets out the exceptions and annual obligations. A landlord should not try to direct an agent or tenant to ignore the scheme without written HMRC authority.
Applying to receive UK rent without tax deducted
An individual landlord may apply to HMRC to receive UK rental income without tax being deducted using the official NRL1 application route. Companies and trustees use different official forms and routes, which are listed in HMRC’s Non-resident landlord forms collection.
HMRC says it will normally approve an application if the form is complete and correct, and if it is satisfied that the applicant will meet UK tax obligations. It may refuse an application where it is not satisfied that the information is correct or that the applicant will follow those obligations. HMRC can also seek further information after an initial approval and can withdraw approval in the circumstances set out in its guidance.
Approval is communicated to the landlord or authorised tax agent, and separately to named letting agents or tenants. Until the relevant payer has HMRC’s written notice, it should continue to follow the scheme rules that apply to it. Applying is therefore not the same as immediate permission to change how rent is paid.
What approval does-and does not-change
Approval allows the landlord to receive the relevant UK rental income without tax being withheld under the NRLS. It does not mean the rental income is tax-free, that no UK return is required, or that all tax has been settled. The landlord may still need to register for and complete Self Assessment, report rental profits, pay tax due and meet any other UK obligations that apply.
It also does not resolve every issue linked to a landlord living abroad. Tax residence, treaty relief, expenses, finance-cost restriction, company taxation, CGT, inheritance tax, overseas reporting and the legal management of the property can each involve different rules. Keep this guide’s purpose narrow: it explains the NRLS payment-and-withholding mechanism and points to HMRC’s current process.
For the broader tax journey, see LK’s Landlord Tax and Finance guide. The separate Section 24 guide concerns the residential finance-cost restriction; it does not explain NRLS eligibility or replace an NRL application.
Joint owners, companies, trusts and representatives
NRLS treatment follows the person entitled to the rental income. Where a property is jointly owned, HMRC’s guidance says that the relevant owner’s share is considered separately. If both spouses or civil partners are within the scheme and each wants to receive rent without tax deducted, each normally needs a separate application. A UK-based co-owner is not automatically within the NRLS simply because the other owner lives abroad.
Companies and trustees should not use the individual NRL1 route. HMRC provides separate company and trust application routes. Where a property is owned by a company, a trust, a partnership or through more complex arrangements, use the correct official form and obtain professional advice if the ownership or entitlement is uncertain.
A UK representative, a letting agent and a tenant are not interchangeable roles. The person receiving or handling rent can have different duties under the scheme. Give an agent accurate overseas-contact information and tell them promptly about an HMRC approval notice, but do not rely on informal correspondence in place of HMRC’s written authority.
A practical checklist for landlords moving or living abroad
- Identify the legal owner or owners of the UK property and the share of rental income to which each is entitled.
- Tell the letting agent promptly if a landlord’s usual place of abode is, or will be, outside the UK.
- Check the official NRLS definition and the appropriate HMRC form rather than relying on a general label such as “expat” or “non-resident”.
- If applying to receive rent without deduction, use the right route: NRL1 for an individual, with the company/trust forms where applicable.
- Wait for HMRC’s written notice before assuming that rent can be paid gross.
- Keep rent statements, expense records, HMRC notices and any annual certificates from the letting agent or tenant.
- Consider the separate reporting process. LK’s Making Tax Digital for Landlords guide explains the upcoming digital reporting changes, which are distinct from the NRLS.
- Take personalised tax or legal advice where residence, treaty relief, ownership, a trust, a company or a move between countries affects the answer.
