What's changing
When separate property rates were announced, the government said it would update the non-resident landlord withholding rate to match the property basic rate. The Budget of 28 October 2026 set that rate at 24% from April 2027.
What to do
If your UK tax affairs are up to date, consider applying to receive rent gross. Either way, model your 2027/28 liability with our calculator, and read the full non-resident landlord guide.
What it means in cash terms
Take £1,000 a month of rent, with £200 of expenses paid by your agent. The agent deducts tax on £800 each month: £160 at 20% today, and £192 at 24% from April 2027. That's £384 more held back each year. Your actual liability is settled on your return. If more was withheld than you owe, for example because your Personal Allowance covers some of the profit, HMRC refunds the difference.
Don't forget CGT if you sell
Non-residents must report every sale of UK property within 60 days, even if there's no tax to pay. Estimate any tax with our CGT calculator.
Frequently asked questions
Will my agent deduct 24% automatically?
Agents must apply the rate in force for each quarter. If you're approved to receive rent gross, nothing is deducted and you pay through Self Assessment.
Can I reclaim tax that was over-deducted?
Yes. The tax deducted is credited against your liability on your UK tax return, and any excess is repaid.
Sources
- GOV.UK: Non-resident landlord scheme guidance
- HM Treasury: Budget documents, 28 October 2026
- GOV.UK: Report and pay Capital Gains Tax on UK property
Sources last checked 9 November 2026. See all our sources and how we keep pages up to date.