The Non-Resident Landlord Scheme: 2026 Guide for Overseas UK Property Owners
If you own UK rental property but live abroad, HMRC collects tax on that income differently — and missing the paperwork means losing 20% of your rent to withholding by default.
This Banke guide explains how the scheme works.
Who Counts as Non-Resident
You're treated as a non-resident landlord if you have UK rental income and usually live outside the UK — specifically, if you're abroad for a period that exceeds, or is expected to exceed, six months.
The Default: 20% Withheld at Source
Without further action, your letting agent (or tenant, if there's no agent) must withhold 20% basic-rate tax from your rental income and pay it to HMRC quarterly, within 30 days of each quarter end.
Applying to Receive Rent Gross: NRL1
If your actual tax liability after allowable deductions is lower than what would be withheld, you can apply via form NRL1 to receive rent in full instead. This doesn't exempt the income from UK tax — it just means you agree to settle the liability yourself through self-assessment rather than having it withheld upfront. Approval takes a number of weeks, so submit NRL1 as soon as you move abroad or start letting while overseas, not after the first rent payment gets withheld.
You Still Need to File Every Year
Whether or not tax was withheld at source, non-resident landlords must file a UK self-assessment return annually — this applies whether the property made a profit or a loss.
Talk to Banke
Contact Banke and pair this with advice from a UK tax specialist before your first rental payment.