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Disregarded Income For Non-UK Tax Residents

Written by
Friday 02 July 2021
3 years ago

Non-UK resident landlords

If you, or your loved ones, earn UK property income it will need to be reported in the UK. Any letting agency that manages your property, or the tenant that occupies the property, has the responsibility of withholding basic rate tax before they pay the rent to you. As a non-UK resident landlord you can complete a NRL1 form (or NRL2 for companies) to stop your letting agent or tenant deducting the 20% tax withholding on gross rents and reporting it to HMRC. As a non-UK resident landlord you will also need to complete an SA1 form to register for self-assessment. You, and your loved ones, can make all this easy by asking one of our friendly, professional non-UK resident tax advisors at The Taxman UK to help you fill out all the relevant forms that you need to make your non-UK resident tax return every year.

Disregarded income

Your UK rental income can be left in the UK or transferred worldwide but the tax position is different for any savings income you may have in the UK. As a non-UK resident tax payer you have the option to disregard certain income. Disregarded income is income such as bank interest and dividends, but not rental income. As a non-UK resident you have two options; to disregard certain income that has arisen in the UK but lose your personal allowance, or include the income on your non-UK resident tax return and retain your personal allowance. Any disregarded income does not apply for “split year” tax years and you, and your loved ones, need to be careful not to be caught by HMRC’s temporary non-UK residency rules or the disregarded income will come back into charge on the year of return. If all of this sounds complicated then the best way to make your non-UK resident tax return is to ask a good, professional non-UK tax advisor for some advice.

Please don’t hesitate to contact one of our experienced non-UK resident tax advisors by sending us an enquiry at [email protected] for an initial consultation. Good tax advice will save you time, money and stress, whether you are disregarding income in your non-UK resident tax return or not.

The Taxman UK “Making Life Less Taxing for non-UK residents”


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