NRL 1 : Non - Residence Landlord Tax Scheme
- In the case of individuals, HMRC normally regard an absence from the UK of six months and 1 day or more as meaning that a person has a usual place of abode outside the UK. It is therefore possible for a person to be resident in the UK yet, for the purposes of the scheme, to have a usual place of abode outside the UK.
- Letting agents are obliged to "not rely" on box numbers and care of c/o addresses provided by landlords.
- If an agent relies in good faith on a UK address provided by the landlord, the agent does not need to deduct the tax.
- With independent taxation, both spouses jointly owning a property, must provide evidence of exemptions or have income tax deducted at source proportional to ownership on the deeds for any spouse not providing exemption.
- There are different forms to complete:
- An individual NRL1 (PDF 71K) (district reference 940) - send the NRL1 to: Public Depts. 1, Ty Glass Road, Llanishen, Cardiff CF14 5XZ
- A company NRL2 (PDF 29K) see also NRL2 Notes
- Submitted to the Inland Revenue if a landlord resides outside the UK longer than say 6 months each fiscal year.
- "If you have rental property in the UK but your usual home is outside the UK, your tenants or the letting agents you use will need to operate the Non-resident Landlord Scheme. They need to deduct basic rate tax from rental income before they pass it onto you.
- Tenants (bizarrely) may have a duty to deduct and pay a landlords tax before passing the remainder to the landlord in rent.
- Landlords can set this tax off against their own tax bill at the end of the year."
- 'Usual place of abode':
- Although HMRC refer to 'non-resident' landlords, it is the usual place of abode and not non-residence that determines whether a landlord is within the scheme or not. Tel: 02920 325048 for detailed information.
- See Annual returns:https://www.hmrc.gov.uk/international/nr-landlords.htm#40
- The NRL scheme is run by the HMRC Financial Intermediaries and Claims Office FICO
- Non Dom means non-domiciled, i.e. living outside the UK for at least 6 months and 1 day.
See also
- https://www.gov.uk/tax-foreign-income/non-domiciled-residents
- NRL = Non UK resident landlord
- CGT
- SDLT
- Revenue Tax
- Independent Taxation
- NRL 1
- Tax Exemption
- Tax Campaign - amnesty
- ATED
- Mansion Tax
- Council Tax
- Inheritance Tax
Published: 10 November 2013
Last Updated: 13 January 2022
NRL 1 : Non - Residence Landlord Tax Scheme