What is an NRL1?
The NRL1 form is for Non Resident Landlords who pay tax on rental income in the UK.
As a non resident landlord you are still liable to pay UK tax on your rental income in the UK. Usually your letting agent or tenant has to deduct tax before you receive your rental payments. The Non Resident Landlord Scheme means that you don’t have to pay tax on your rental income.
What the NRL1 form means for you
- The NRL1 has to be sent to the tax office and is a request to be accepted as a non resident landlord for tax purposes.
- If your NRL1 application is accepted the scheme allows for your rental income to be paid without any tax being taken off.
- It doesn’t mean that you are exempt from paying any tax on your rental income. The tax office can request that a Self Assessment tax return is completed, meaning that you need to declare your rental income even though tax has not been deducted. Depending on the value of your rental income you may be liable to pay some UK income tax.
What makes me a non resident landlord?
You are normally classed as a non resident landlord if your usual place of residence is outside the UK or you have left the UK for more than 6 months. Even if your intention is to only stay out of the UK temporarily you will generally still be eligible for the Non Resident Landlord Scheme.
What if more than one person owns the property?
If more than one person owns the property each owner needs to complete an NRL1 form and needs to apply individually.
For the purposes of the Non-Residential Landlord Scheme, a UK letting agent is someone who lives in the UK and assists a Non-Residential Landlord in the administration, maintenance and other tasks involved in letting their property. The letting agent may receive rental income on behalf of the Non-Resident Landlord, sending it to their overseas or UK account.
How can I apply for the non resident landlord scheme?
You need to contact HMRC telling them about your non resident status and they will then review your application and give you a decision on your eligibility.
Non resident landlord support
Tax Rebate Services offers support to non resident landlords from qualified experts who can assist you in filling in your tax return, claiming back overpaid tax, and applying to the NRL scheme.