Quick answer
Non-resident landlords pay UK tax on UK rental profits. Letting agents or tenants may deduct basic-rate tax unless HMRC approves you to receive rent gross under the Non-Resident Landlord Scheme, and you still file a Self Assessment return.
Updated October 2026 · Figures based on 2025/26 rates
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The Non-Resident Landlord Scheme
If you live abroad for more than 6 months a year, tax is normally withheld at 20% from net rent. You can apply to HMRC to receive rent without deduction if your tax affairs are up to date.
Self Assessment duties
Report UK rental income on your return, even if tax has been deducted. Any deducted tax is credited against your final bill.
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Allowances and reliefs
Whether you can claim the UK personal allowance depends on your residence status and nationality, so check your position each year.
Selling the property
Non-residents are subject to UK capital gains tax on UK property and must report a disposal within 60 days.
How the Non-Resident Landlord Scheme works
You are a non-resident landlord for tax purposes if you let out UK property while your usual home is outside the UK, or if you are away from the UK for six months or more. Your residence status is decided under the Statutory Residence Test, not simply by where you feel you live. Being non-resident does not remove UK tax on UK rental income: the profits from UK property remain taxable in the UK wherever you live.
Under the Non-Resident Landlord Scheme, a letting agent or tenant paying you rent must normally deduct basic-rate tax (20%) from the rent after allowable expenses they can verify, and pay it to HMRC. You can apply to HMRC to receive rent gross, without deduction, if your UK tax affairs are up to date or you expect no UK tax to be due. Approval is not automatic, so check HMRC’s guidance on rental income if you live abroad for how to apply and what evidence is needed.
Reporting rent on Self Assessment
Whether tax is deducted or not, non-resident landlords generally still need to file a Self Assessment return to declare their UK rental profits. If tax has been deducted by an agent or tenant, you claim it as a credit on the return, and it either covers your bill or produces a repayment. You report the income on the UK property pages, using the same rules for allowable expenses that apply to resident landlords, including the choice between the £1,000 property allowance and actual costs. Our guide to how landlords report rental income goes through those pages.
Personal Allowance and residence
Whether you can claim the £12,570 Personal Allowance as a non-resident depends on your nationality and the particular rules that apply to you. Some people qualify and others do not, so check current HMRC guidance before assuming it will be available. This can change the tax result significantly, as the example below shows.
Worked example: agent deducts tax from rent
This is an illustrative example using 2025/26 figures. A landlord living abroad receives rent of £12,000 through a letting agent. The agent charges £1,200 in management fees and pays £800 for repairs.
| Step | Working | Result |
|---|---|---|
| Rent less expenses | £12,000 – £1,200 – £800 | £10,000 |
| Basic-rate tax deducted by agent | £10,000 x 20% | £2,000 |
Scenario A: Personal Allowance available. With no other UK income, taxable income is £10,000 – £12,570, which is below zero, so the UK tax due is nil. The £2,000 deducted would be claimed back as a repayment.
Scenario B: Personal Allowance not available. Tax is £10,000 x 20% = £2,000. The £2,000 already deducted covers the bill exactly, so nothing more is due. You still file the return.
If the landlord had other taxable income that pushed total income into the higher-rate band, some rent would be taxed at 40% and a further payment would be due by 31 January.
Selling UK property from abroad
Non-residents are chargeable to Capital Gains Tax on gains from UK property. A sale of UK property by a non-resident generally has to be reported to HMRC within 60 days of completion, and any tax paid within the same period, even if no tax turns out to be due. For rules and rates, see selling a rental property and the 60-day rule and our guide to the capital gains tax return.
Tax in two countries
Rental income can also be taxed in the country where you now live. Where that happens, a double taxation treaty or relief may reduce the overall bill, but the relief usually depends on the specific treaty and your records. See HMRC’s guidance on being taxed twice on foreign income for the principles.
Common mistakes
- Assuming that living abroad means UK rent is not taxable.
- Not registering with HMRC and letting the agent deduct tax without applying for gross payment.
- Forgetting to claim credit for tax already deducted.
- Missing the 60-day reporting deadline on a UK property sale.
- Assuming the Personal Allowance is always available.
- Overlooking tax duties in the country of residence.
Practical checklist
- Confirm your residence status for the tax year.
- Ask your agent for a statement of rent, expenses and any tax deducted.
- Decide whether to apply for gross payment.
- Check whether you qualify for the Personal Allowance.
- Gather expense records and mortgage interest statements.
- File by 31 January after the tax year, and keep records for five years.
How SATR can help
SATR, a trading style of Accotax, provides qualified UK accountants who prepare non-resident landlord returns and file them online for a fixed fee from £199 + VAT. See Self Assessment for landlords or order online.
This article is general information, not personal tax advice.
Frequently asked questions
How do I apply for gross rent?
Apply to HMRC’s NRL team using the online form once your tax records are up to date.
Do I need a UK accountant?
It is not compulsory, but a UK accountant helps with HMRC communication and filing.
Do non-resident landlords have to file a UK tax return?
Generally yes, if they have UK rental profits, even where an agent has deducted tax. The return is used to claim credit for the tax deducted and to settle any balance.
How can I receive rent without tax being deducted?
You can apply to HMRC under the Non-Resident Landlord Scheme for approval to receive rent gross. Check current HMRC guidance on eligibility and the application process.
Do I pay Capital Gains Tax on a UK property sale if I live abroad?
Non-residents are generally chargeable on gains on UK property and must report the sale within 60 days of completion. Check current HMRC guidance for your circumstances.
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The bottom line
Non-resident landlords still pay UK tax on UK rental profits, and must generally file a Self Assessment return even where an agent has deducted tax at 20%. You can apply to receive rent gross if your tax affairs are up to date, but approval is not automatic. Check whether you qualify for the Personal Allowance, keep good records, and do not forget the 60-day reporting deadline if you sell.
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