How the deduction works
Your agent takes allowable expenses they paid on your behalf away from the rent, then deducts basic-rate tax on the rest and pays it to HMRC quarterly. Tenants deduct from the full rent. You get a certificate showing the tax taken each year.
Receiving rent gross
Apply to HMRC using form NRL1 for individuals. Approval doesn't mean no tax. It means you pay through Self Assessment instead.
What changes in April 2027
The government said the withholding rate will be updated to match the new property basic rate. Under the plans confirmed in the Budget of 28 October 2026, that's 24%. Your actual bill is still worked out on your return, at the property rates for your band. Many non-residents keep their Personal Allowance, depending on nationality and residence.
Selling while non-resident
Non-residents must report every disposal of UK property within 60 days, even when no tax is due.
Frequently asked questions
Do I lose my Personal Allowance if I live abroad?
Not always. UK nationals and residents of some countries keep it. Check GOV.UK for the eligibility rules.
Sources
- GOV.UK: Non-resident landlord scheme guidance
- GOV.UK: Report and pay Capital Gains Tax on UK property
- HM Treasury: Budget documents, 28 October 2026
Sources last checked 9 November 2026. See all our sources and how we keep pages up to date.