Non-Resident Landlords

Do I pay UK tax on rental income if I live abroad?

Answered by Jordan Onraet-Wells, Founder & Chartered Tax Adviser (CTA). Published 17 July 2026. Last reviewed 17 July 2026.

The short answer

Yes. Rental income from a UK property is always taxable in the UK, however long you live abroad and wherever the rent is paid. Under the Non-Resident Landlord Scheme your letting agent, or a tenant who pays you directly more than £100 a week, must deduct 20% basic-rate tax from the rent unless HMRC approves your NRL1 application to receive it gross and settle the tax through Self Assessment. Most British and EEA nationals keep the £12,570 Personal Allowance (2026/27), so a modest rental profit often means little or no UK tax to pay.

UK property income stays within UK tax whether you are resident or not; moving abroad changes how the tax is collected, not whether it is due.
Letting agents must deduct 20% under the Non-Resident Landlord Scheme whatever the rent level; tenants paying you directly only where the rent is over £100 a week.
Form NRL1 (NRL1i online) lets you receive rent gross; the income is still declared and taxed through Self Assessment.
Most British and EEA nationals keep the full £12,570 Personal Allowance for 2026/27, and mortgage interest gives a 20% tax reduction rather than a deduction from profit.
Non-residents need the SA109 residence pages, which HMRC's free online return does not support: file on paper, by commercial software or through an agent.

How the tax is collected once you live abroad

Once your usual place of abode is outside the UK (HMRC normally treats an absence of six months or more this way, a different test from the Statutory Residence Test), the Non-Resident Landlord Scheme applies. Your letting agent must deduct basic-rate tax at 20% from the rent whatever its level and pay it to HMRC quarterly; a tenant paying you directly does the same where the rent is over £100 a week. You can apply on form NRL1 to receive the rent gross. Approval does not make the income tax free: it moves collection to your Self Assessment return, and HMRC expects your UK tax affairs to be up to date before approving.

The common trap: paying more than you owe

The 20% deduction is worked out on the rent less only the expenses your agent knows about, ignoring your Personal Allowance and the basic-rate reduction for mortgage interest, so it usually over-collects. Without NRL1 approval the tax is taken before the rent reaches you, and you reclaim any excess through your return after the year ends, using the NRL6 certificate your agent or tenant must give you by 5 July. Your country of residence will normally tax the same rent too, but a double taxation agreement usually gives credit for the UK tax, so you should not pay twice in full.

What to do

Tell HMRC you have left the UK, apply for gross payment on NRL1 (each joint owner applies separately), and register for Self Assessment. Each year you report the rent on the SA105 property pages alongside the SA109 residence pages, filing on paper, through commercial software or via an agent. Our non-resident landlord tax guide covers the scheme, the forms and the allowances in detail, and our expat Self Assessment guide explains the filing route.

Go deeper

Sources and further reading

This is general information for the 2026/27 UK tax year, not personal tax advice; speak to a Chartered Tax Adviser about your own position.

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