Where is your investment property located?

France
France
UK
UK
USA
USA
Spain
Spain
Ireland
Ireland


Filing Deadline

UK Tax Deadline January 31st


U.K. Property Taxes Overview

Residence

The tests for determining an individual's residence status are complex. However, for the purposes of the Non-resident Landlord Scheme an individual is regarded as Non UK resident if they are outside the UK for more than six months.

Non-Resident Landlord (NRL)

Irish resident landlords are liable to UK income tax on income from properties within the UK and must file a UK Tax Return. The UK income tax year runs from 6 April to the following 5 April each year.

Non-Resident Landlords Scheme (NRLS)

The letting agent for the property, or if no agent is acting, the tenant, must deduct basic rate tax (currently 20%) at source and pay this over to the Inland Revenue.

Any tax paid to the Inland Revenue on the Landlord's behalf is held as a tax credit against the Landlord's final tax liability. This obligation for the withholding tax is removed if the landlord registers with the Inland Revenue under the Non-Resident Landlord Scheme where, upon filing an NRL1 Form and obtaining approval, a tax exemption certificate is issued to the landlord.

Approval is obtained where your UK tax affairs are up to date or if you do not expect to be liable to UK tax or if you never had any prior UK tax obligations.

The Landlord must provide the Tenant/Agent with a copy of the Inland Revenue's exemption certificate or alternatively, a separate notice may be sent by the Inland Revenue to the letting agents or tenants named on the application form authorising them to pay rent to the non-resident landlord without deducting tax.

Please note:
Even though rent may be paid without withholding tax, the rental income still remains liable to UK tax. So non-resident landlords must include it in any tax return HMRC sends them.

If you do not apply to receive gross rents your tenants will have to operate the NRL Scheme by carrying out the following:

  • Account quarterly for any tax due under the scheme by 5 July following each year ended 31 March
  • Give the non-resident landlord a tax deduction certificate NRL6
  • Complete an annual information return

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