Property hub / Non-resident landlords
Letting UK property while living abroad
What your agent or tenant must hold back under the Non-Resident Landlord Scheme, your actual UK tax, and the rules when you buy or sell.
Checked against legislation and HMRC guidance2026/27Updated 3 October 2026
A year, your share
Agent's costs: letting fees, repairs, insurance. Not interest.
How it is worked out
UK tax for non-resident landlords
If you live outside the UK and let UK property, your letting agent, or your tenant if the rent is over £100 a week and there is no agent, must deduct basic rate tax from the rent less allowable costs and pay it to HMRC each quarter. You can apply to receive the rent in full and pay the tax through your UK tax return instead.1
Applying for gross payment
Individuals apply on form NRL1, companies on NRL2 and trustees on NRL3. The deduction is a payment on account of your tax, not an extra tax: it is set against what you owe on your return.2
Personal allowance
Non-residents can claim the UK personal allowance if, for example, they are UK or EEA nationals, or residents of the Isle of Man or Channel Islands. Some tax treaties also give it.3
Companies
Non-UK resident companies pay UK corporation tax on UK property profits at 25%. The small profits rate and marginal relief are only for UK resident companies.4
Buying and selling
Non-UK residents buying residential property in England or Northern Ireland pay a 2% stamp duty surcharge. There is no equivalent in Scotland or Wales.5 Non-resident individuals and trustees must report every disposal of UK land or property to HMRC within 60 days of completion, even if there is no gain. Non-UK companies report gains on their corporation tax return instead.6
Common questions
Do I have to pay UK tax on rent if I live abroad?
Yes. UK rental profit is taxable in the UK whoever you are and wherever you live. Your country of residence may also tax it and give credit for the UK tax.
Who counts as non-resident for the stamp duty surcharge?
An individual is treated as non-resident if they spend fewer than 183 days in the UK in the 12 months before the purchase. Where spouses or civil partners who live together buy jointly and one is UK resident, both are treated as UK resident for the surcharge. A UK close company controlled by non-UK residents can also pay the surcharge. If you later spend 183 days in the UK in any continuous 365 days, from 364 days before to 365 days after completion, you can claim the 2% back within two years.
Sources (6)
- HMRC, 'Paying tax on rent to landlords abroad' (GOV.UK, updated 30 September 2026).
- HMRC, 'Apply as an individual to receive UK rental income without UK tax deducted' and the company and trust equivalents (GOV.UK).
- Income Tax Act 2007, s 56.
- Corporation Tax Act 2009, s 5; Corporation Tax Act 2010, ss 18A and 18B.
- Finance Act 2003, Sch 9A.
- HMRC, 'Capital Gains Tax for non-residents: UK residential property' (GOV.UK); Taxation of Chargeable Gains Act 1992, Sch 4AA; Finance Act 2019, s 14 and Sch 2.
Living abroad with UK property?
We register you for gross payment, file your UK returns and coordinate with your advisor overseas.