Free
2025/26
UK rental income tax for non-resident landlords
Moved abroad but kept your UK property? As a non-resident landlord you still owe UK income tax on your rental profits. This calculator shows your liability, allowable deductions, and how the Non-Resident Landlord Scheme (NRLS) works.
You still owe UK tax on UK rental income — even as a non-resident
HMRC's Non-Resident Landlord Scheme requires your letting agent (or tenant) to deduct 20% tax at source unless you register for gross payment. You can then reclaim or settle via Self Assessment.
Your rental income & costs
Based on 2025/26 UK income tax rates.
Note: mortgage interest is no longer a direct expense — it receives a 20% tax credit instead.
Repairs, letting agent fees, insurance, service charges (not capital improvements).
UK pensions, dividends, interest, part-year employment. Leave 0 if none.
Most UK citizens living abroad can still claim the £12,570 personal allowance. Check your DTA if unsure.
Your tax estimate
Adjust the inputs to calculate.
📋 How the Non-Resident Landlord Scheme works
1
Default position: Your letting agent (or tenant if no agent) must deduct 20% basic rate tax from your rental income and pay it to HMRC quarterly.
2
Register for gross payment: Complete form NRL1 (available on GOV.UK). HMRC approves landlords with a satisfactory UK tax record — then you receive rent gross and settle via Self Assessment.
3
File a Self Assessment return: You must file a UK Self Assessment (SA105 property pages) each year, report your net rental profit, claim allowable expenses, and pay any balance due.
4
Mortgage interest restriction: Since April 2020, mortgage interest is no longer a deductible expense. Instead you receive a 20% tax credit on the interest paid — so higher-rate taxpayers are affected most.
5
Avoid double tax: Check your DTA — most countries give credit for UK tax paid on UK rental income, so you don't pay twice.
Guidance, not advice. Calculated using 2025/26 England & Wales income tax bands. Rental tax is complex — this is a simplified estimate. It does not account for prior year losses, wear and tear allowances, furnished holiday lettings rules, or capital allowances. Always use a UK tax accountant for your Self Assessment return.