Address :- 152-178 Kingston Rd, New Malden KT3 3ST, UK

Timing :- Mon - Fri : 09:00 - 17:00

Phone :- 020 8191 9583

Timing :- Mon - Fri : 09:00 - 17:00

Phone :- 020 8191 9583

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Non Resident Landlords

Accountants for non resident landlords

ZahTax Accountants is an independent firm of Chartered Certified Accountants providing Non-resident Landlord tax Services. We have a specialist team of property tax experts who can help with all your landlord tax compliance in the UK.

Our expert team has in-depth knowledge about the non resident taxation. It can provide solutions for all types of non resident landlords, such as single or multiple property landlords, HMO serviced apartments, and student accommodation.

Typing on keyboard with text non resident landlord tax services
Who is a non resident landlord for UK tax purposes?

If you live outside the UK for more than six months and rent out a UK property, you will be a non resident landlord. We can group such non-resident landlords into two categories: 

  • Those who are British nationals temporarily or permanently move abroad for any reason, such as employment, business or other family reasons. There are currently 5.5 million people living abroad in different countries, mainly in The Republic of Ireland, Spain, France, Germany, Italy, Australia, New Zealand, Canada, United States, South Africa. 
  • Those who are foreign residents and/or nationals and have invested in the UK property market. They may own a single or several property which they rent out to generate some rental income on their investment. 
 
How are the non-resident UK landlord tax will be calculated?

The UK tax will be calculated on the profits you make from your rental property. 

Example: Suppose you are renting your property for £1,000/month. Your gross rental income would be £12,000/year. 

You would be able to claim the expenses related to your rental property and rental activity. Let’s suppose you have incurred the following expenditures:

Estate agent fee£1,200
Service charges£800
Ground£200
Other expenses£500
Total expenses£2,700

Your rental profit would be £9,300 (£12,000 – £2,700). You will pay tax on your rental profits of £9,300.

What are the tax rates on UK Rental Income?

The tax rates on UK rental income depend on which income bands your rental income falls in. If you are eligible for UK Personal allowances, the tax rates applicable on your non resident UK rental income would be: 

Personal allowancesUp to £12,5700%
Basic rate£12,571 to £50,27020%
Higher rate£50,271 to £150,00040%
Additional rateover £150,00045%

If you are NOT eligible for UK Personal allowances, the tax rates applicable on your non resident UK rental income would be::

Basic rate£12,571 to £50,27020%
Higher rate£50,271 to £150,00040%
Additional rateover £150,00045%
Registration as a non resident landlord and Non resident landlord scheme

There is usually no tax for those who are not resident in the UK. However, if any non-resident has UK source of income, in particular, UK property income, there will potentially be tax liability to pay. The non resident landlords are subject to Non resident Landlord Scheme (NRLS). The Non resident landlord scheme applies to those who have:

  • UK property income and
  • Usually, resident outside the UK

 

Under NRLS, your estate agent or tenant will deduct basic rate tax (20%) from your rental income after allowing for any expenses they have paid. They will issue you a certificate at the end of the tax year showing how much tax has been deducted during the year.

The tax deducted by the estate agent/tenant is unlikely to be equal to the landlord’s actual tax liability because the rules for non resident landlord scheme are different from those for calculating taxable rental income.  Non resident landlords can set off the tax deducted by estate agents or tenants with their tax liability when they file their annual self assessment tax return. They can claim repayment of any excess tax deducted by their estate agent.

Non resident landlords can apply to receive their rental income as gross from estate agents/tenants. They are required to complete a form called Non resident Landlord form (NRL1 form). HMRC will normally grant permission to receive rental income as gross if they are satisfied that the applicant is UK tax compliant and has no overdue tax filings or unpaid tax liabilities. Once the gross payment status is granted, the NRL must complete and submit self assessment tax returns every year and ensure that the tax liability is paid on time.

Deadlines

Non resident landlords are required to file their self assessment tax return every year. The relevant tax period for non resident landlords in the UK starts on 6 April and end on the following 5 April. The deadline to submit the tax return for such period is the following 31 January, after the end of the tax year. For example, for the tax year 6 April 2022 to 5 April 2023, the deadline to submit the tax return and to pay any taxes is 31 January 2021.

Why choose Zahtax for your non resident landlord tax services?
How our landlord tax services can help you?
  • Qualified Chartered Certified Accountants 
  • HMRC Authorised Agent  
  • Specialist team for Non resident landlords taxation 
  • HMRC Authorisation accounting software for the preparation and submission of your tax returns 
  • GDPR compliant online portal to exchange important documents

Our team of specialist non resident landlord tax accountants can provide you with the following services: 

  • Register you as a non resident landlord with HMRC 
  • Preparation of your rental property accounts 
  • Calculation of taxable rental profits and the tax liability due 
  • Determining whether you eligible for UK personal allowances
  • Preparation and submission of your non resident landlord tax return using our approved HMRC authorized software 
  • Appointing Zahtax Accountants as your authorised agent 
  • Reminders for all the important deadlines 
  • Dealing with all HMRC correspondence on your behalf 

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