Overseas Landlords
Responsibilities
In accordance with the finance Act 1995 any landlord residing outside the UK for more than 6 months is considered by the Inland Revenue to be a ‘Non Resident Landlord’. As such, it is the responsibility of any Letting Agent acting on behalf of Non Resident Landlord/s to ensure that the landlord/s have obtained approval from the Inland Revenue to receive gross rental income without deduction of tax.
In order to obtain approval a landlord or landlords (in the case of joint ownership) simply require to complete an NRL1 Form (a copy of which can be provided by your letting agent) confirming the address of the property they intend to rent and the amount they expect to receive in rental income. The Agent will then complete part and submit directly to the inland revenue who will then provide an ‘Approval number’ allowing the Agent to release the full amount of rent without deduction of tax to the landlord/s.
Please be aware that without approval your Letting Agent must by law deduct the basic level of tax from your net rental income (after deductions for fees and repairs) and submit a tax return to the Inland Revenue at the end of every quarter.
In the case of Company’s residing overseas the procedure is very similar with the company completing an NRL2 form instead.
Should you require any further information on this subject please do not hesitate to contact your local branch.
