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Do I Need To Pay Tax If I Am An Overseas Landlord

Do I Need To Pay Tax If I Am An Overseas Landlord

The time is just right to be a landlord in U.K.! According to our estate agent London, £476,000 was the average house price in London in March of 2018 which is just a 1% decrease from last year’s average so now is the time to buy.  If you own a rental property in the U.K. as a non-resident, you may have many questions related to paying tax on your rental income.  Ultimately, Do I Need To Pay Tax If I Am An Overseas Landlord?

Who is a non-resident landlord?

Any landlord who has rented out a property in the U.K. and is living abroad for more than six months is classified as a “non-resident landlord.”(NRL). The income from the rental property in U.K. is taxable for NRLs.

Other NRLs include:

  • Companies that rent out their U.K. property while their place of business or registered office is not in the UK
  • Diplomats, armed forces personnel or Crown servants who have an overseas posting

There are two ways that landlords can be taxed on their rental income:

The first method is through self-assessment tax returns. These are filed every year on or before the deadline of 31 January if filing the tax online, or 31 October if filing on paper. The second method is through tax deduction at source from tenants or letting agents.

If you are an expat renting out your property in U.K., you must register under the NRL scheme. If your usual home is not in the U.K., but you have a rental property in the country, your letting agents and tenants will also have to operate the NRL scheme.

 Letting agents under the NRL scheme have to deduct basic tax from the rent collected for landlords who are non-residents. If as a non-resident landlord, you do not have any letting agents in the U.K. acting on your behalf, then your tenants must deduct tax if their rent is above £100 per week.

Tax deduction may not be done if a non-resident landlord has applied for and been approved to receive rent without tax deduction. Despite this, the landlord still is liable to pay tax and has to include the income in the tax return

Hopefully this answers your question “Do I Need To Pay Tax If I Am An Overseas Landlord”.


If you require more information please call our team of experts at Greater London Properties, London’s largest estate agent specialising in Residential Sales, Lettings and Property Management across Central London. Visit our website or call us on 0207 734 4062.



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