14th November 2019
The Non-Resident Landlord Scheme (NRLS) is a scheme for taxing the UK rental income of persons whose “usual place of abode” is outside of the UK.
The Non-Resident Landlord Scheme (NRLS) is the mechanism by which HM Revenue & Customs (HMRC) collects the tax due on the UK rental income of non-resident landlords. Non-resident landlords are individuals, companies or trustees who receive rental income from property owned in the UK and whose “usual place of abode” is outside the UK.
The scheme requires UK letting agents (or tenants if the weekly rent exceeds £100 and no letting agent is appointed) to deduct basic rate tax (currently 20%) on any rental income they collect on behalf of non-resident landlords and pay this tax over to HMRC on a quarterly basis.
Non-resident landlords can offset any tax deducted under the NRLS against their tax liability when they complete and file their UK Tax Return.
However, it is not necessary for letting agents or tenants to deduct tax from rental income of a non-resident landlord if HMRC informs them by letter that the landlord is approved to receive the rental income gross.
More information about the Non-Resident Landlord Scheme can be found here
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