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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:
  • 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

Published: 10 November 2013 Last Updated: 13 January 2022
NRL 1 : Non - Residence Landlord Tax Scheme