UK property tax for people living abroad
Simple UK property tax advice for people living abroad: rental tax returns, Let Property Campaign disclosures, and 60-day sale reporting.
UK rental income is always taxable in the UK, even when you live in another country. The Non-Resident Landlord Scheme affects how your rent is paid, and any property sale must be reported within 60 days.
Property matters I handle
- Non-Resident Landlord Scheme (NRL1) forms so you receive rent without 20% tax taken off
- Annual rental accounts, allowable expense deductions, and Self Assessment tax returns
- HMRC Let Property Campaign disclosures for undeclared or past missing rental income
- Making Tax Digital (MTD) quarterly preparation for non-resident landlords
- SA105 property schedules and SA109 non-resident tax pages
- Tax deducted by letting agents or tenants and HMRC refund claims
- UK Capital Gains Tax for non-residents and mandatory 60-day property sale reports
- Joint property ownership, furnished holiday lets, and changes in property use
How the review works
- 1
Review ownership and use
Confirm dates, owners, rental activity and residence.
- 2
Organise the figures
Prepare rental income, costs and tax already deducted.
- 3
Complete the reporting
Handle the annual return or property disposal report.
- 4
Plan what changes next
Review a future sale, return to the UK or ownership change.
What you receive
- Rental income reported correctly
- NRLS position clarified
- Sale deadlines protected
- One adviser for annual continuity
Frequently Asked Questions
How do I stop my UK letting agent deducting 20% tax from my rent?
Submit an NRL1 application (Non-Resident Landlords Scheme) to HMRC. Once approved, HMRC issues a formal certificate authorising your letting agent or tenant to pay your gross rental income without withholding basic rate tax.
What is the 60-day rule for non-residents selling UK property?
Any non-resident individual or trust selling or disposing of UK residential property must report the disposal to HMRC and pay any Capital Gains Tax due within 60 days of completion. A report is legally required even if there is no gain or if the sale resulted in a loss.
What is the HMRC Let Property Campaign for overseas landlords?
The Let Property Campaign is HMRC's dedicated disclosure facility for landlords who have failed to declare past UK rental income. Disclosing voluntarily under the campaign secures substantially reduced penalties and avoids criminal prosecution.
How are mortgage interest and financing costs relieved on UK rental property?
Under Section 24 rules, residential landlords cannot deduct mortgage interest directly from rental profits. Instead, tax relief is given as a basic rate 20% tax credit against your UK income tax liability.
Do non-resident landlords still receive the UK Personal Allowance (£12,570)?
Yes, provided you are a British citizen, an EEA national, or a citizen of a country with an eligible Double Taxation Treaty (such as the USA, Canada, Australia, Switzerland, or South Africa). This allowance (£12,570) offsets against your net rental profits, but must be formally claimed each year on Box 16 of supplementary page SA109.
How does HMRC discover undeclared rental income from landlords living abroad?
HMRC uses automated Connect data matching, cross-referencing Land Registry title deeds, statutory annual withholding returns from UK letting agents (Section 19 TMA 1970 returns), tenancy deposit protection schemes, and mortgage lender databases. Coming forward via the Let Property Campaign before HMRC issues an enquiry letter secures the lowest penalty tier.
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