Non-Resident Landlord Scheme (NRL1): the basics for overseas landlords

How the Non-Resident Landlord Scheme works and where to find the NRL1 form on GOV.UK.

The Non-resident Landlord (NRL) Scheme is how HMRC collects tax on UK rental income where the landlord's usual place of abode is outside the UK. GOV.UK states that a landlord who lives abroad for more than 6 months of the year must pay tax on any income they get from renting out property in the UK.

Who has to operate the scheme

GOV.UK says tax must be deducted from rent by:

• a letting agent, whatever the amount of rent collected, and
• a tenant who pays over £100 a week in rent and whose landlord lives abroad.

A letting agent under the scheme is someone who helps the landlord run their UK rental business, receives their rent or controls where it goes, and lives in the UK for more than 6 months a year. GOV.UK notes this can be an estate agent, solicitor, accountant or friend of the landlord — but not someone who only provides legal advice or services. Where a property is jointly owned, tax is paid on each landlord's own share of the rental income.

Receiving rent with no tax deducted

A non-resident landlord can apply to HMRC on form NRL1 to receive UK rental income without tax deducted. Where HMRC has told the agent or tenant in writing that the landlord can be paid gross, no deduction is made — but GOV.UK confirms the agent or tenant must still register and complete the annual report.

Quarterly payments and annual reporting

GOV.UK sets out that payment must be sent within 30 days of the end of each tax quarter — 30 June, 30 September, 31 December and 31 March. To work out the amount, the total rent for the quarter is reduced by deductible expenses paid in that quarter, and the net rent is multiplied by the basic rate of Income Tax.

Each year by 5 July, the agent or tenant must send a report to HMRC and to the landlord using form NRLY, and provide the landlord with certificate NRL6.

Records to keep

GOV.UK requires records to be kept for 4 years covering rent received or paid (with dates and amounts), correspondence with the landlord about where they usually live, and expenses paid with dates, amounts, descriptions, invoices and receipts.

Non-UK companies

The scheme continues to apply to non-UK resident company landlords, whose UK property business profits have been within the scope of Corporation Tax since 6 April 2020.

Where to read the rules

• Paying tax on rent on behalf of landlords who are abroad (GOV.UK)
• Form NRL1: apply to receive rent with no tax deducted (GOV.UK)
• The Taxation of Income from Land (Non-residents) Regulations 1995 (legislation.gov.uk)

Sources - https://www.gov.uk/guidance/paying-tax-on-rent-to-landlords-abroad - https://www.gov.uk/government/publications/non-resident-landlord-application-to-have-uk-rental-income-without-deduction-of-uk-tax-individuals-nrl1 - https://www.legislation.gov.uk/uksi/1995/2902/contents

General summary of published HMRC guidance; not tax advice.

Sources: - https://www.gov.uk/guidance/paying-tax-on-rent-to-landlords-abroad - https://www.gov.uk/government/publications/non-resident-landlord-application-to-have-uk-rental-income-without-deduction-of-uk-tax-individuals-nrl1 - https://www.legislation.gov.uk/uksi/1995/2902/contents

Published: 2026-08-03.

Last reviewed: 2026-08-30.

General summary; not legal advice.