Can I rent out my UK property while living abroad?
UK rental income, the Non-Resident Landlord Scheme (NRLS), allowable expenses, and Self Assessment for expat landlords.
Short answer: You can rent out your UK home while living abroad, but your rental profit is still taxable in the UK. To stop your letting agent from automatically taking 20% off your gross rent, you must register with the Non-Resident Landlord Scheme (NRLS). Matthew sets up your NRL1 approval and files your property returns.
Key points
- UK rental income is always taxable in the UK, even when you live abroad.
- NRL1 approval lets you receive gross rent without 20% tax deducted at source.
- You can deduct letting fees, repairs, insurance, and claim mortgage interest tax credits.
- Most British expats still receive the £12,570 UK tax-free Personal Allowance.
- Matthew prepares and files your property accounts and SA109 residence pages.
The Non-Resident Landlord Scheme explained
If you live outside the UK for more than 6 months of the year and rent out UK property, HMRC legally requires your letting agent (or tenant, if there is no agent) to deduct 20% basic-rate tax from your rent.
By applying for the Non-Resident Landlord Scheme (Form NRL1), HMRC allows you to receive your rent in full. Matthew submits your NRL1 application directly to HMRC for rapid approval.
What expenses can you deduct?
You only pay tax on your net rental profit, not your total rental income. You can deduct genuine running costs to lower your tax bill.
Maximise your rental profit and keep your tax simple...
Matthew calculates your exact rental profit, applies all allowable expenses and finance credits, and files your non-resident tax return with HMRC.
- Letting agent commission, management, and advertising fees
- Property repairs, maintenance, and gas safety certificates
- Landlord building and contents insurance
- Accountancy fees for preparing your rental tax returns
- 20% tax credit on residential mortgage finance interest
Written and reviewed by Matthew S Manderson CTA ATT AMIT
Chartered Tax Adviser (CTA), Association of Taxation Technicians (ATT), Association of Malta International Taxation (AMIT). General guidance only; tax treatment depends on individual facts.