NRL1 Form: Step-by-Step Guide for UK Landlords Living Abroad

Who this page is for

If you live outside the UK and own (or are about to own) UK rental property, you almost certainly need to know about the NRL1 form. This page walks through what it does, when to file it, and how to complete it properly.

This is a general guide. For your specific tax position, speak to a tax adviser. For mortgage matters arising from your status as a non-resident landlord, an expat-specialist mortgage broker can help.

What the NRL1 form is

NRL1 is the form used to apply to HMRC to receive UK rental income without basic-rate tax being deducted at source.

If you are a non-resident landlord and you have not been approved on NRL1, your letting agent (or your tenant, in some cases) is required to deduct 20% basic-rate income tax from your rent before paying you. The deducted amount goes to HMRC. You only receive it back, if you are owed it, through self-assessment after the tax year ends.

NRL1 approval lets you receive rent gross, with you settling any UK tax owing through self-assessment. For most non-resident landlords this is materially better for cash flow.

For a fuller explanation of the underlying scheme, see the Non-Resident Landlord Scheme page.

Who needs to file NRL1

You should file NRL1 if you are a non-resident landlord and want to receive UK rental income gross.

You are a non-resident landlord if your "usual place of abode" is outside the UK for more than six months of the tax year. This includes:

• British nationals living abroad.
• Foreign nationals owning UK rental property.
• Joint owners where any of you is non-resident (each non-resident owner needs to file separately).

You do not need to file NRL1 if:

• You are a UK resident.
• You own UK property through a UK-incorporated limited company (the company is not a non-resident, even if you live abroad).
• You do not let the property at all.

Joint owners each need their own NRL1. If a property is owned by two non-resident spouses, both file separately. If one owner is UK-resident and the other is not, only the non-resident owner files.

When to file NRL1

You should file NRL1 before your first rent receipt as a non-resident landlord. Once you start receiving rent, withholding rules apply automatically with most letting agents until HMRC issues approval.

Practical timing:

• If you are about to move abroad and will be letting your existing UK home: file NRL1 in the weeks before your move.
• If you already own UK rental property and are now becoming non-resident: file NRL1 as soon as your non-residence is established.
• If you are about to buy a UK rental property as a non-resident: file NRL1 as soon as you have a property under offer or shortly after completion.

If you have already been receiving rent under withholding, you can still file NRL1 to switch to gross payment going forward. The tax already withheld is reconciled through your self-assessment return.

Where to find the form

The NRL1 form is on the gov.uk website at gov.uk/government/publications/non-resident-landlord-application-to-have-uk-rental-income-without-deduction-of-uk-tax-individuals-nrl1.

Search "NRL1 form HMRC" if the URL has changed.

The form is a PDF you complete and submit by post. There is also an online version available through HMRC's online services in some circumstances.

Completing the NRL1: section by section

The NRL1 has several sections. Here is what each one asks for.

Section 1: Personal details

• Your full name (must match your name as it appears on official documents).
• Your date of birth.
• Your National Insurance number (if you have one).
• Your UK tax reference (Unique Taxpayer Reference, if you already have a UK self-assessment record).
• Your overseas address (your usual place of abode).
• Your UK correspondence address, if different (where HMRC should write to you in the UK).
• Your telephone number and email address.

If you do not have a UTR yet because you have never filed UK self-assessment, you can leave that field blank. HMRC will issue one as part of approving your NRL1.

Section 2: Tax residency

• The country where you currently live.
• The date you became non-resident in the UK.
• Whether you are claiming benefits under a double tax treaty (most British expats do not need to claim treaty benefits, but US-resident applicants and others sometimes do).

The "date you became non-resident" should be the date you actually moved abroad, not the start of the tax year unless they coincide.

Section 3: Property and letting details

• The address of the UK property (or properties) you let.
• The date letting started or will start.
• Approximate annual rental income.
• Name and address of your letting agent (if you have one).
• Whether the tenant pays you direct (rare but possible).

If you have multiple UK rental properties, list all of them on the same NRL1.

Section 4: Declaration

• A declaration that you are aware of UK tax obligations.
• A confirmation that you will file self-assessment as required.
• Your signature and the date.

The declaration is the legal commitment to comply with UK tax rules. HMRC takes it seriously and your application can be revoked if you fail to comply later.

What HMRC does with your application

After you submit NRL1, HMRC reviews it. Typical processing time is three to six weeks.

HMRC checks:

• Whether your tax affairs are up to date.
• Whether you have a track record of UK tax compliance (or no record, which is fine for first-time applicants).
• Whether the letting arrangements look genuine.

If approved, HMRC sends:

• A letter to you confirming approval, with a UTR if you did not already have one.
• A notice to your letting agent (if you have one) authorising gross payment.

Your letting agent is then permitted to pay you rent without deducting basic-rate tax.

If declined, HMRC writes to you explaining why. The most common reasons for decline are unresolved tax issues from previous UK obligations, or missing information on the application.

After approval

Approval is not a one-time event you can forget about. You must:

• File a UK self-assessment tax return each tax year, reporting your UK rental income and any tax paid.
• Settle any UK tax owing by the relevant deadlines.
• Notify HMRC of any material changes (new properties, change of agent, change of address).

Failure to comply can lead to revocation of NRL1 approval, after which withholding kicks back in.

Common pitfalls and tips

Submitting too late. Withholding starts as soon as you become non-resident if you have not been approved. Submit NRL1 before your move where possible.

Joint owners filing one NRL1. Each non-resident owner needs their own. Joint NRL1s are not accepted.

Missing UTR. If you have ever filed UK self-assessment, find your UTR and include it. If you have not, leave blank and HMRC will issue one.

Vague property details. Be specific. Full UK postal addresses, accurate start dates, and realistic rental figures.

Out-of-date letting agent details. If you are between agents, the form is harder to complete. Either pause until you have an agent in place, or note the change clearly so HMRC knows.

Self-assessment forgotten after approval. Plenty of NRL1-approved landlords have approval revoked because they failed to file returns. Approval is conditional on ongoing compliance.

International tax position. If you live in a country with a double tax treaty, your UK rental income may be taxed differently. NRL1 is the UK side. You will also need to consider how your country of residence taxes the same income, with treaty relief where applicable.

Frequently asked questions