If you live outside the UK and rent out property here, three HM Revenue and Customs forms sit at the center of your tax life. Form NRL1 is the non-resident landlord application that lets you receive rent without the automatic 20% tax deduction. Form SA105 is the Self Assessment supplement where you declare UK rental income and expenses each year. Form SA109 records your residence status and is where you claim the personal allowance if you’re entitled to it. Together, these are the core non-resident landlord tax forms for individuals, and each one does a different job.
Why These Forms Exist
The Non-Resident Landlord Scheme requires letting agents, and in some cases tenants, to withhold income tax at 20% from rent paid to landlords whose usual place of abode is outside the UK.1legislation.gov.uk. Income Tax Act 2007 – Income Tax Due in Respect of Income of Non-Resident Landlords HMRC generally treats you as non-resident for this purpose if you live outside the UK for more than six months in a tax year. The moment that’s true, the withholding obligation starts, and it continues until HMRC tells your agent or tenant otherwise.
Letting agents account for the tax quarterly, with payments due within 30 days of 30 June, 30 September, 31 December, and 31 March.2GOV.UK. What the Non-Resident Landlords Scheme Is Tenants who pay rent directly only have to operate the scheme when rent exceeds £100 per week; below that threshold, the tenant has no withholding duty. The forms below let you take control of that tax bill instead of leaving it to the withholding system.
Form NRL1: Applying for Rent Without Tax Deducted
Form NRL1 is the application individual landlords use to receive UK rental income gross. You can complete it online through HMRC’s digital service or download and post a paper version.3GOV.UK. Apply as an Individual to Receive UK Rental Income Without UK Tax Deducted Both methods reach the same team, and HMRC typically takes around 30 days to process an application.
Approval doesn’t make your rental income tax-free. It shifts responsibility for reporting and paying tax from your agent or tenant to you, through Self Assessment. HMRC sends a separate notice to any letting agents or tenants named on your application, authorising them to stop withholding.3GOV.UK. Apply as an Individual to Receive UK Rental Income Without UK Tax Deducted Until that notice arrives, deductions continue.
What Goes on the Form
Include your Unique Taxpayer Reference (UTR) if you know it and your National Insurance number if you have one. Neither is strictly mandatory, but including them speeds up processing because HMRC can match your application to existing records. You’ll also need:
- Every UK rental property you own, listed individually by address.
- The reference number for the letting agent handling your rental income, if applicable.
- Contact details for any tenants who pay you directly.
- The date you left the UK or plan to establish residence elsewhere. This sets the start of your non-resident tax treatment.
When HMRC Approves
HMRC will normally approve your application if the form is complete and they’re satisfied you’ll meet your UK tax obligations.3GOV.UK. Apply as an Individual to Receive UK Rental Income Without UK Tax Deducted More specifically, approval comes through if your UK tax affairs are up to date, you’ve never had UK tax obligations, or you don’t expect to owe UK tax for the year you’re applying.2GOV.UK. What the Non-Resident Landlords Scheme Is Outstanding tax debts or unfiled returns will stall the application until they’re resolved.
If the Property Is Jointly Owned
Each joint owner is treated as a separate landlord under the scheme. Both must submit their own NRL1 to receive their share of the rent gross, and an authorisation for one owner does not cover the other, even between spouses or civil partners.2GOV.UK. What the Non-Resident Landlords Scheme Is Where only one joint owner lives abroad, the scheme applies only to that person’s share.
Companies and Trustees Use Different Forms
NRL1 is for individuals. Non-resident companies file Form NRL2 and non-resident trustees file Form NRL3, both available by post from HMRC.4GOV.UK. Non-Resident Landlords: Company or Trustee Application to Have UK Rental Income Without Deduction of UK Tax If you hold your UK property through a company or a trust, NRL1 isn’t the right form for you.
Form SA105: UK Property Income and Expenses
Once HMRC approves NRL1, you still have to file an annual Self Assessment return, and SA105 is the supplement that reports your UK rental income. It walks through rental receipts, then lets you deduct costs such as repairs, insurance, letting agent fees, legal fees, and Council Tax during void periods.5GOV.UK. Self Assessment: UK Property (SA105) The result is your taxable rental profit or loss.
The 2025 version of the form breaks this into sections for furnished holiday lettings and other property income, with separate lines for each category of expense.6HM Revenue and Customs. SA105 2025 – UK Property The expense rules are the same as for UK-resident landlords: any cost incurred wholly and exclusively for your rental business, provided it isn’t capital in nature, is deductible.2GOV.UK. What the Non-Resident Landlords Scheme Is One catch: mortgage interest on residential rental property cannot be deducted as an expense. You receive a tax credit at the basic rate (20%) for the interest paid instead.
Form SA109: Residence and Personal Allowance
Form SA109 records your residence and domicile status for the tax year and is where you claim personal allowances as a non-resident if you’re eligible.7GOV.UK. Residence and Foreign Income and Gains (FIG) Regime etc (Self Assessment SA109) The 2025–26 version includes boxes to confirm your non-UK residence, enter the countries where you were tax-resident, and indicate whether a double taxation agreement entitles you to the personal allowance.8HM Revenue and Customs. SA109 – Residence and Foreign Income and Gains (FIG) Regime etc
SA109 also carries the box for claiming relief under a double taxation agreement, which matters if your country of residence also taxes your UK rental income. The UK has agreements with over 130 countries; the mechanics of the relief depend on which one applies to you.
Who Gets the Personal Allowance
Not every non-resident landlord gets the £12,570 personal allowance that UK residents receive automatically.9GOV.UK. Income Tax Rates and Personal Allowances You can claim it if you’re a British citizen, an EEA national (subject to specific conditions), a resident of the Channel Islands or Isle of Man, a Crown servant, or if the double taxation agreement between the UK and your country of residence grants it. Without it, your UK rental profit is taxed from the first pound, which at 20% on the first £50,270 of taxable income can add roughly £2,500 to your annual bill.
Deadlines and Penalties
For the 2025–26 tax year, a paper Self Assessment return must reach HMRC by 31 October 2026. Online filers have until 31 January 2027. Missing either date triggers an automatic £100 penalty regardless of whether you owe any tax.10GOV.UK. Self Assessment Tax Returns: Penalties
The penalties climb fast after that. Three months late brings daily penalties of £10 per day, up to a maximum of £900. Six months late adds a further 5% of the tax due or £300, whichever is greater. Twelve months late adds the same again.10GOV.UK. Self Assessment Tax Returns: Penalties
Late tax attracts interest at 7.75% per year (the rate from 9 January 2026).11HM Revenue & Customs. HMRC Interest Rates for Late and Early Payments Separate late payment surcharges of 5% of the unpaid tax apply at 30 days, 6 months, and 12 months after the due date.12GOV.UK. Self Assessment Tax Returns: Penalties – Section: If You Pay Your Tax Late Combined, the interest, surcharges, and filing penalties can easily exceed 20% of the original tax bill within a year.
How the Three Forms Fit Together
NRL1 is a one-time application: file it when you become non-resident, wait for HMRC’s approval, and your rent starts arriving without the 20% deduction. SA105 and SA109 are annual: every tax year, SA105 tells HMRC what you earned and spent on the property, and SA109 tells them where you lived and whether you can claim the personal allowance. Skip NRL1 and you’ll be chasing withheld tax back from HMRC each year. Skip SA105 or SA109 and the penalties start on 1 February.