Non Resident Landlords Tax

Non Resident Landlord Tax Services by Specialist Property Accountants

At Martax Accountants, we are a team of Chartered Certified Accountants with extensive expertise in providing accounting and tax services to individuals and businesses. As specialist property accountants based in the UK, we offer dedicated non resident landlord tax services to overseas property owners. Our fixed fee non resident landlord tax services ensure that you are fully compliance with HMRC requirements while maximising your tax liability.

If you are a non resident landlord earning rent from UK property, it is important to meet your tax responsibilities under HMRC’s Non Resident Landlord Scheme. At Martax Accountants, our experienced team is here to help. Whether you are letting a single room, a residential property, or operating as a Furnished Holiday Let (FHL) business, our non resident landlord tax accountant can provide clear guidance and expert support to help you manage your tax responsibilities effectively. We offer FREE initial consultation— by phone, at our offices, or at a location convenient for you.

Who is a Non-resident Landlord?

A non resident landlord is an individual who receives rental income from UK property while living outside the UK for more than six months in a tax year. HMRC treat such individuals as non resident landlords. If you fall under this category, it is important to understand your tax obligations and ensure compliance with HMRC rules. At Martax Accountants, our professional Non Resident Landlord Tax Services can assist in minimising tax liability while making sure that you stay fully compliant.

How Does the Non Resident Landlord Scheme Work?

The Non Resident Landlord Scheme (NRLS) is a tax scheme applied by HMRC to UK rental income earned by landlords whose usual place of residence is outside the UK. Under this scheme, UK letting agents are legally required to deduct basic rate tax from the rental income of non resident landlords and send it to HMRC.

In cases where there is no letting agent involved, and the non-resident landlord manages the property directly, tenants paying more than £100 per week in rent must also deduct tax from the payments and send it to HMRC.

However, non resident landlords can apply to HMRC for approval to receive their UK rental income without tax deducted at source. Once approved, letting agents and tenants will receive written confirmation from HMRC, allowing them to pay the landlord in full without deducting tax.

Our Non Resident Landlord Tax Services can help with the tax advice and ongoing compliance. 

What If My Rental Income Is Less Than the UK Personal Allowance?

If your total UK income as a non resident landlord is below the personal allowance limit (£12,570 for the 2024/25 tax year), you will not be liable to pay any UK tax on your rental profits.

However, it’s important to correctly establish whether you are entitled to claim the UK income tax personal allowance as a non resident. Eligibility depends on factors such as your nationality, place of living and residency and any applicable double taxation agreements. If your rental income is above the personal allowances threshold, you may be required to pay income tax on the excess.

The tax rate applied to your rental income will depend on your total UK taxable income. You can also read more about UK rental income tax rates here.

Am I Eligible for Personal Allowances in the UK as a Non Resident Landlord?

As a non resident landlord, your entitlement of UK personal allowances depends on your nationality and country of residence. As per the current HMRC rules, if you are a British citizen or a national of an EU country, you are generally entitled to claim personal allowances against your UK rental income. However, if you are a non-EU citizen, your eligibility may vary based on the terms of the double taxation agreement between the UK and your country of residence.

Understanding whether you qualify for personal allowances is important, as it can help reduce your taxable income and overall tax liability. At Martax Accountants, our Professional Non Resident Landlord Tax Services can help assess your eligibility for UK personal allowances and ensure that you maximise your tax savings.

Understanding Allowable Expenses for Non-Resident Landlords

When it comes to UK property income, understanding allowable expenses is important for maximising tax efficiency. At Martax Accountants, our specialised Non Resident Landlord Tax Services are designed to help overseas landlords make the most of all available deductions and remain fully compliant with HMRC regulations.

Allowable expenses are costs that can be deducted from rental income, provided they are spent for the purpose of letting the property.

Here are some of the most commonly allowable expenses for non resident landlords:

• Letting agent fees and commissions
• Repairs and maintenance costs for the rental property
• Council tax or water charges (if paid by the landlord)
• Buildings and contents insurance premiums
• Mortgage interest (subject to tax relief changes effective from 6 April 2017)
• Service costs, including wages for cleaners, gardeners, etc.
• Legal fees related to short-term lets (under one year) or lease renewals (less than 50 years)
• Non Resident Landlord Tax Return Accountant fees
• Ground rent and service charges
• Direct letting costs such as phone calls, postage, advertising for tenants
• Vehicle expenses used specifically for the rental business (proportionate use)

Non-Allowable Expenses

It’s important to differentiate between allowable and non-allowable expenses. HMRC does not permit deductions for the following:

• The full amount of mortgage payments (only the interest portion is potentially deductible)
• Any personal expenses not related solely to the property rental business
• Private telephone calls or stationery not used for rental purposes
• Personal travel not linked directly to letting activities.

I will be charged tax on my UK rental income in my home country, is there any relief available in the UK?

Some overseas landlords believe that UK tax is not due on their UK rental income as they will be charged to tax in their home country where they are resident. This is an incorrect assumption, UK will have the first right to tax income from UK situated rental property, even if it is also subject to tax in another country.

If the taxpayer is also liable to tax in their home country on their UK rental income, they are usually able to claim credit for UK tax against foreign tax charges in their country of residence.

Our Non resident landlord tax return services

Our non resident landlord tax return services team can help you to:

• Calculate your taxable profits on the property
• Advise on claiming all the legitimate expenses to optimize tax savings
• Determining whether or not you are eligible for personal allowances
• Complete your tax return using HMRC approved software
• Advise you on the tax liability to be payable to HMRC and when they are due or if they have deducted too much tax at source, the refund to be credited direct to your bank account.

For more information and arrange a free consultation, please contact us.

Our Non Resident Landlord Tax Services

Our non resident landlord tax accountant team can help you provide advice and guidance related to your non resident tax matters.