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What is Non-Resident Landlord Scheme?
Last verified 23 October 2026
The Non-Resident Landlord Scheme is HMRC's system for collecting tax on UK rent paid to landlords who live abroad. Letting agents, and in some cases tenants, deduct basic rate tax from the net rent and pay it to HMRC, unless HMRC has agreed that the landlord can receive rent without deduction.
Why it matters to landlords
A landlord who lives abroad for more than 6 months of the year is covered. A letting agent must operate the scheme however much rent it collects. A tenant who pays more than £100 a week in rent to a landlord who lives abroad must also use it. The agent or tenant pays the tax within 30 days of the end of each quarter ending 30 June, 30 September, 31 December and 31 March, and sends an annual report to HMRC and the landlord by 5 July.
To receive rent with no tax taken off, individuals apply on form NRL1 (companies use NRL2 and trustees NRL3). HMRC can agree if your UK tax affairs are up to date, you have never had UK tax obligations, or you do not expect to owe UK Income Tax that year. HMRC can refuse if it is not satisfied that you will meet your UK tax obligations. UK rent declared on your UK return also counts towards Making Tax Digital qualifying income.
Example
A landlord moves to Dubai and keeps a London flat let through an agent. Unless HMRC accepts an NRL1 application, the agent deducts basic rate tax from the rent each quarter and pays it to HMRC.
MTD qualifying income explained →
Related terms
- Foreign property income
- UK property business
- Qualifying income
- Self Assessment
- 60 day Capital Gains Tax reporting