The Non-Resident Landlords (NRL) Scheme is a policy run by HM Revenue & Customs for the taxation on UK rental income of expatriate landlords.
The scheme makes provision for either letting agents, or tenants where an agency is not appointed, to deduct tax at the basic rate. It is an offence for this taxation not to be deducted and paid.
An application can be made to HMRC for approval to receive rents with no tax deduction, although it still remains liable to UK tax and non-resident landlords must include it in any tax return.
Non-resident landlords are defined as individuals, companies or trustees who benefit from UK rental income where their usual place of abode is outside the UK.
For individuals the term “usual place of abode outside the UK” is applied to those absent from the UK for six months or more. It is therefore possible for an individual to be resident in the UK yet, for the purposes of the scheme, to be considered to have a usual place of abode outside the UK.
We can manage NRL applications and payments to the revenue for our clients if required but must insist that we cannot be held responsible for an individuals tax affairs.