Non-Resident Landlords

Do non-resident landlords get the UK Personal Allowance?

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

The short answer

Yes, most non-resident landlords keep the full UK Personal Allowance, which is £12,570 for 2026/27. British citizens and nationals of other EEA countries are entitled to it wherever they live, and many other people qualify under a double taxation agreement between the UK and their country of residence. If your UK rental profit is below £12,570 and you are entitled to the allowance, there is usually no UK tax to pay, although you must still claim the allowance and report the income.

British citizens and EEA nationals keep the full £12,570 Personal Allowance (2026/27) no matter where in the world they live.
Non-British, non-EEA landlords may still qualify under a double taxation agreement, or by having worked for the UK government during the tax year.
The allowance is not applied automatically: non-residents claim it on the SA109 residence pages of a Self Assessment return, or on form R43 if they do not file one.
Under the Non-Resident Landlord Scheme, letting agents or tenants deduct 20% tax from rent without applying the allowance, so over-collection and refunds are common.
If no entitlement route applies, the allowance is lost and UK rental profit is taxed from the first pound.
Rental profit below £12,570 with entitlement usually means no UK tax at all, but the filing obligation remains.

Who qualifies and who does not

Entitlement does not depend on UK residence. You keep the Personal Allowance as a non-resident if you are a British citizen, a national of an EEA country, or you worked for the UK government at any time in the tax year. Many others qualify because the double taxation agreement between the UK and their country of residence grants the allowance. If none of these routes applies, you lose it, and your UK rental profit is taxed from the first pound, normally at the 20% basic rate. Our non-resident landlord tax guide covers the full picture.

The common trap: 20% deducted at source ignores your allowance

Under the Non-Resident Landlord Scheme, your letting agent (or a tenant paying more than £100 a week directly) must deduct basic-rate tax at 20% from your rent unless HMRC has approved you to receive it gross. The deduction allows only for expenses the agent has paid and takes no account of your Personal Allowance or the finance-cost reduction, so it routinely over-collects: a landlord with a modest profit and a full allowance can have far more deducted than they actually owe. Applying on form NRL1 to receive rent gross, then settling any tax through your return, is usually the better route.

How to claim the allowance as a non-resident

The allowance is claimed, not automatic. If you file a Self Assessment return, you claim it on the SA109 residence pages, which sit alongside the SA105 property pages; note that HMRC's free online service does not support the SA109, so you file on paper, through commercial software, or via an agent. If you are not required to file a return, you claim the allowance and any refund of tax deducted using form R43 after the tax year ends. See our expat Self Assessment guide for the filing detail.

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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