Renting out your UK home when you move abroad
UK rent can stay taxable when you move abroad. Under the non-resident landlord scheme, your agent or tenant may deduct basic-rate tax unless HMRC approves payment without deductions.
Information only. Not tax, legal or financial advice.
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By Flight Risk Capital. Published: . Last updated: .
When am I a non-resident landlord?
The scheme applies when your usual place of abode is outside the UK and you receive UK rent. HMRC normally treats an absence of 6 months or more as an overseas usual place of abode. That test can differ from tax residence.
You can therefore be within the scheme while still UK tax resident. Work out residence separately using the statutory residence test guide. This distinction comes from HMRC’s scheme guidance, updated 18 March 2026.
Who deducts tax from the rent?
A letting agent handling your rent normally deducts basic-rate Income Tax and sends it to HMRC. The agent must operate the scheme regardless of the rent amount unless HMRC has authorised payment without deductions.
Without an agent, a tenant paying more than £100 a week normally deducts the tax. At £100 a week or less, the tenant need not operate the scheme unless HMRC tells them to. These thresholds come from HMRC’s scheme guidance, updated 18 March 2026.
Arrange this before the first rent payment after the change. Give the agent your overseas details and check who is handling deductions. A request from you to pay gross does not replace HMRC’s authorisation.
How are basic-rate deductions worked out?
The person operating the scheme adds the rent for the quarter, subtracts eligible expenses they paid and applies the basic rate of Income Tax. That rate is 20% for 2026-27 (HMRC, Income Tax rates, checked 25 October 2026). This collection calculation is separate from your final annual tax bill.
HMRC’s payment guidance, published 8 December 2014 and checked 25 October 2026, sets out the calculation. Property Income Manual PIM4810 confirms quarterly reporting and payment within 30 days of the quarter ending. Keep statements and the certificate showing tax deducted.
How do I apply for NRL1 approval?
Individuals use form NRL1 to ask for rent without tax deducted. HMRC considers whether your UK tax affairs are up to date, you have had no UK tax obligations or you do not expect a liability for the application year.
HMRC tells the agent or tenant when approval applies. Until then, normal deductions continue. Joint owners need their own approvals for their shares; one person’s approval does not cover their spouse or civil partner.
Approval changes how tax is collected. It does not exempt your rent from UK tax. HMRC’s NRL1 guidance is dated 5 September 2024; its scheme guidance was updated 18 March 2026.
Do I still need Self Assessment?
You must normally declare UK rental income through Self Assessment unless HMRC tells you otherwise. For a non-resident individual, the return includes the property pages, SA105, and the residence pages, SA109.
HMRC’s rental income guidance, checked 25 October 2026, says to use a paper return, suitable commercial software or a tax professional. You cannot report this through HMRC’s own online service as a non-resident.
Use the SA109 guide to choose a filing route. Keep rent, expense and tax-deduction records so deductions can be accounted for against your final liability.
What if I sell the home or return to the UK?
Rent and the later sale are separate tax events. The non-resident CGT guide covers UK property disposals. A later return also makes the temporary non-residence rules worth checking before you sell other assets.
Use the moving abroad checklist to put the rent arrangements alongside departure reporting. From 6 April 2027, planned property income rates in England, Wales and Northern Ireland are 24%, 44% and 49%. Scotland sets its own property income rates. Allowances, residence and filing rules still matter. See the Budget tracker for announcements and effective dates. Check again before relying on a calculation.
What else do readers ask?
Does NRL1 make my rent tax-free?
No. Approval allows rent to be paid without tax deducted at source. You still declare it and settle any UK tax through Self Assessment.
Must my tenant deduct tax if I have no letting agent?
Normally yes if the rent exceeds £100 a week. At £100 a week or less, the tenant normally need not operate the scheme unless HMRC directs them to (HMRC, 18 March 2026).
Does every letting agent have to use the scheme?
An agent handling rent for a landlord within the scheme must normally deduct tax regardless of the rent amount, unless HMRC has authorised payment without deductions.
Can the scheme apply while I am UK tax resident?
Yes. It uses your usual place of abode, which can be abroad even when you remain UK resident under the tax residence rules.
Where can I explore this further?
Full sourced leavers tracker. Articles and tracker roundups.