Non-Resident Landlords

What is the non-resident Landlords’ scheme?

The non-resident landlords (NRL) scheme is a scheme for taxing the UK rental income of non-resident landlords (overseas landlords). It applies to rents and other income of a UK rental business/property and is paid on or after the 6 th April 1996. It replaces earlier arrangement which apply to UK rental income paid before 6 th April 1996

From 6 th April 1996, letting agents of a non-resident landlord must:

• Deduct tax from the landlord’s UK rental income; and
• Pay the tax to the Inland Revenue on their behalf
• Agents who have tenants who pay rent of £100 per week or less do not have to operate the scheme unless they are told to do so by the Inland Revenue.

Agents have to operate the scheme and must account for tax for each quarter that is for each three month period ending on 30 th June, 30 th September, 31 st December and 31 st March

Agents do not have to deduct tax from the rental income of a non-resident landlord if the Inland Revenue have told them in writing that the Landlord is approved to receive the rental income with no tax deducted.

At Jordans we are registered with the Inland Revenue as an Overseas Agent and can therefore apply on you behalf for you to receive all your rental income/payments with no tax deducted. You will then be able to give the Inland Revenue the correct payment at the end of your tax period rather than claiming back tax that has been overpaid.