A guide for Non-UK resident landlords to receive your UK rental income without deduction of UK tax - individuals (NRL1)
At Vesper Group we can provide you with a general overview of the process for non-UK resident landlords to receive UK rental income without deduction of UK tax using the NRL1 form. However, please note that tax laws and regulations can change, and it’s always best to consult with a tax professional or legal advisor who specialises in UK taxation to ensure you’re following the most up-to-date and accurate information for your specific situation.
1. Determine your residential status
Before proceeding, you need to establish whether you are a non-UK resident landlord for tax purposes. The total days you spend in the UK within a tax year (i.e 6 April to 5 April) determines your tax status as either a UK resident or non-resident for tax purposes.
Top tip! To find out whether you were a UK resident or not in any tax year from 6 April 2016, you can use HMRC’s online residence status checker. Government website GOV.uk provides details about the government’s Statutory Residence Test, which further explains many of the above points.
As a non-UK resident landlord, you can apply for approval from HM Revenue and Customs (HMRC) to receive your rental income without deduction of UK tax using the NRL1 form. This form is used to claim your rental income without tax withholding.
3. Complete and Submit NRL1 Form (Self-Completion)
To apply for approval, you need to complete and submit the NRL1 form. The form can typically be found on the official UK government website or obtained from a tax advisor. You will need to provide information about your rental property, your personal details, and your tax circumstances. Make sure you provide accurate information to avoid any complications later on.
At Vesper Group we offer a service which is FREE of charge, to fill out the NRL1 on your behalf by a highly qualified chartered accountant. This can ease any stress or anxiety you may have about completing this form correctly.
After submitting the NRL1 form, whether this is self done or with Vesper Group, you will need to wait for approval from HMRC. This process may take some time, so be patient. Keep copies of all documents you submit for your record.
Once you receive approval, you can receive your UK rental income without tax deduction. However, you still have an obligation to report this income in your home country (if required) and potentially in the UK as well. The UK has double taxation treaties with many countries to avoid double taxation, so it’s important to understand how these treaties apply to your situation.
You might need to file a Self Assessment tax return in the UK to report your rental income and claim any allowable expenses or deductions. Even if you’re not liable to pay UK tax due to the double taxation treaty or other reasons, filing a tax return may still be necessary.
At Vesper Group we offer a service which is FREE of charge, to fill out the NRL1 on your behalf by a highly qualified chartered accountant. This can ease any stress or anxiety you may have about completing this form correctly.
