Non-Resident Landlords

What is form NRL1?

Answered by Jordan Onraet-Wells, Founder & Chartered Tax Adviser (CTA). Published 28 July 2026. Last reviewed 28 July 2026.

The short answer

Form NRL1 is the HMRC application an individual non-resident landlord uses to receive UK rental income with no UK tax deducted at source. Without approval, the Non-Resident Landlord Scheme requires your letting agent, or in some cases your tenant, to withhold basic-rate tax at 20% from your rent and pay it to HMRC. Approval does not make the rent tax free; it simply moves collection to your Self Assessment return, which usually improves your cash flow significantly.

NRL1 is for individual landlords only; a company landlord applies on form NRL2 and trustees on form NRL3.
You can apply online (the online version is sometimes labelled NRL1i) or by post; use the postal form if you are also authorising a tax agent.
Letting agents must deduct 20% tax whatever the rent level; a tenant paying you directly only deducts where the rent averages more than £100 a week.
HMRC approves the application where your UK tax affairs are up to date; a late or missing Self Assessment return is a common cause of refusal.
Approval normally takes effect from the start of the quarter in which HMRC receives your application.
Even with approval, you must still declare the rental income to HMRC each year, usually through Self Assessment.

Why NRL1 matters for cash flow

HMRC treats you as a non-resident landlord once your usual place of abode is outside the UK, normally an absence of six months or more, and the Non-Resident Landlord Scheme then requires tax to be withheld from your rent before it reaches you. The problem is that 20% of the gross rent often takes far more than you actually owe once allowable expenses, the basic-rate finance cost reduction on mortgage interest and your Personal Allowance (£12,570 for 2026/27, kept by British and EEA nationals wherever they live) are taken into account. Without NRL1 approval you reclaim the excess through Self Assessment, which can mean waiting many months for your own money.

How to apply and what happens next

Apply online or by post, naming your letting agent or noting that your tenant pays you directly. If you own the property jointly, for example with a spouse, each owner submits their own NRL1. HMRC approves where it is satisfied you will meet your UK tax obligations, then writes to both you and your agent or tenant authorising gross payment; until that notice arrives, the 20% deductions must continue. If HMRC refuses, you can appeal in writing, and getting any outstanding returns filed first usually removes the obstacle.

After approval: you still file and pay

NRL1 approval changes how the tax is collected, not whether it is due. You still report the rent on the SA105 property pages with the SA109 residence pages, and any tax already deducted before approval appears on the NRL6 certificate your agent or tenant must give you by 5 July after the tax year, which you claim as a credit on your return. HMRC can withdraw approval if you fall behind, so staying current is part of keeping your rent paid gross.

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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