Non-Resident Landlords Tax Help

Award-winning accountants with specialist knowledge in the property sector

Understanding non-UK resident landlords

When a non-UK resident landlord is in receipt of UK rental income, the HMRC will require them to comply with the terms of the Non-Resident Landlords Scheme.

The situation for many can be confusing and difficult to understand. We’re here to help take the stress away by providing advice and managing the process for you.

What is the legislation?

UK tax legislation requires anyone in the UK who pays rent to, or collects rent for a non-UK resident landlord, to deduct basic rate Income Tax (currently 20%) from the gross rent, unless HMRC have previously instructed the tenants or agent not to do so.

HM Revenue & Customs will instruct the tenants or the agent not to deduct basic rate Income Tax if the non-UK resident landlord successfully applies for approval to receive rental income gross, with no tax deducted in accordance with the Non-Resident Landlords Scheme.

Receiving rent with no tax deducted

Non-UK resident landlords (including individuals, companies and trustees) can apply to receive their rent with no tax deducted on the basis that either:

  • Their UK tax affairs are up to date; or
  • They have not had any UK tax obligations before they applied; or
  • They do not expect to be liable to UK tax for the tax year in which they apply; or
  • They are not liable to pay UK tax because they are Sovereign Immunes (normally only foreign Heads of State, foreign Governments or foreign Government departments).

How can we help?

We can assist you in obtaining approval from HM Revenue & Customs under the Non-Resident Landlords Scheme. Once approval has been obtained, the non-UK resident landlord has to submit an annual tax return form to HM Revenue & Customs made up to the 5th April of each year. 

Price Bailey is an award winning top 30 firm of business advisers and chartered accountants with a wealth of experience across London and the South East in offering advice and value to non-resident landlords.

 

Enquire online

If you would like to speak to speak to an adviser directly, please call us on 0800 434 6460.

Alternatively, fill in the form below and one of our specialist advisers will come back to you. 

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