Non-Resident Landlords

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Alliotts provides UK tax support for landlords who live overseas, or who are about to move abroad, and who own or rent out property in the UK. HMRC has strict rules on how rental income from non-resident landlords is taxed, and separate rules apply again if you sell or transfer a UK property while non-resident. Our services cover everything from notifying HMRC of a move abroad through to filing non-resident landlord tax returns and non-resident Capital Gains Tax returns.

Why this matters

The UK has firm rules around how rental income is taxed once a landlord stops being UK resident, and it is easy to fall foul of them without realising, particularly around the timing of notifications to HMRC and the way expenses can be claimed. Our tax advisors help non UK resident landlords stay compliant with their obligations while making sure they are not missing out on allowances.

If you go on to sell or transfer a UK property while you are non-resident, there is a further layer of rules to think about, this time around Capital Gains Tax. We can advise on what this means for you and handle the filing of a non-resident CGT return where one is needed.

When we can help

Our team can step in either before you leave the UK or once you are already settled overseas. Support at either stage tends to cover much the same ground, just with slightly different priorities depending on your timing.

Stage	What we typically help with
Before you leave the UK	Notifying HMRC of your departure, establishing your residency status, registering under the non-resident landlord scheme
Once overseas	Calculating taxable profits, advising on claimable expenses, completing and filing your non-resident landlord tax return
Selling or transferring property	Advising on the tax treatment of the disposal, handling non-resident CGT filings, liaising with HMRC on your behalf
Ongoing or historic matters	Liaising with HMRC regarding historic tax returns and resolving any outstanding queries

How we can assist

• Notifying HMRC of your departure from the UK
• Registering you under the non-resident landlord scheme with HMRC
• Establishing your UK residency status
• Calculating your taxable profits from UK property
• Advising you on the expenses you can claim to make the most of available tax savings
• Completing and submitting your non-resident landlord tax return on your behalf
• Liaising with HMRC regarding historic tax returns
• Advising on the tax treatment of UK property disposals, whether by sale or transfer, and assisting with the relevant HMRC filings

Sold a UK property? Don’t miss the 60-day CGT deadline

If you are a non-UK resident and have sold or disposed of a UK property, you may need to report the disposal to HMRC within 60 days of completion. Where Capital Gains Tax is due, the tax must also generally be paid within the same 60-day period. Our specialists can calculate your gain, identify any available reliefs and allowances, and help you meet your reporting and payment obligations.

Not sure where you stand?

If you are already living overseas, or getting ready to leave the UK, and you are unsure what your tax status or obligations are as a non-resident landlord, it is worth getting advice early rather than waiting until a return is due. Our tax experts can talk you through the best way to manage your UK tax affairs as a non-resident landlord, based on your particular circumstances.

Frequently asked questions

Do I still pay UK tax on rental income if I live abroad?

Yes. Rental income from a UK property is taxable in the UK regardless of where the landlord lives. Moving overseas does not remove the obligation, it changes how that obligation is managed, including registration under the non-resident landlord scheme.

What is the non-resident landlord scheme?

It is an HMRC scheme that affects how tax is collected on rental income where the landlord’s usual place of abode is outside the UK. Depending on how the scheme applies to you, tax may be deducted at source by your letting agent or tenant unless HMRC has approved you to receive rent gross.

Do I need to tell HMRC before I leave the UK?

Yes, HMRC should be notified of your departure so your residency status and tax position can be correctly recorded. Leaving this until later can lead to complications with how your income and any future property sale are treated.

Do I pay Capital Gains Tax if I sell my UK property while non-resident?

You may do, and non-residents selling UK property are generally required to file a non-resident CGT return, often within a short window after completion. The rules and any reliefs available depend on your circumstances, so it is worth getting advice before the sale completes rather than after.

What expenses can I claim against my rental income?

Non-resident landlords can generally claim the same types of allowable expenses as UK resident landlords, such as letting agent fees, repairs and mortgage interest restrictions where relevant. What counts as allowable can be easy to get wrong, which is where a proper review of your figures helps.

I already left the UK years ago and never registered. What should I do?

This is more common than people expect, and it is usually possible to bring things up to date with HMRC, including sorting out any historic tax returns. Getting this addressed sooner tends to involve less hassle than waiting for HMRC to raise it first.

Can you deal with HMRC on my behalf?

Yes, we can liaise directly with HMRC for you, whether that is notifying them of your departure, registering you under the non-resident landlord scheme, or resolving queries on historic returns.