What is the NRL1 Form: A Guide for Overseas Landlords

If you're an overseas landlord with UK property, or looking to invest in the UK, it is important to understand the NRL1 form and how it can impact your rental income.

Arjun Kumar
Arjun Kumar
Aug 31, 2023

What is the NRL1 Form: A Guide for Overseas Landlords

The NRL1 form is a declaration that overseas landlords can complete to receive rental income without tax being deducted. If you are an overseas landlord with UK property, or looking to invest in the UK. It’s important to understand the NRL1 Form and how it can impact your rental income.

Understanding the NRL1 Form

As a non-resident for UK tax purposes, you are only subject to UK tax on 'UK sourced' income. This includes rental income earned from properties in the UK. Generally landlords declare and pay income tax via the UK Self-Assessment tax return however overseas landlords may have tax deducted from rental income unless an NRL1 form has been filed. This can be helpful, as tax is usually deducted at the basic rate without expenses or allowances being taken into account.

What is an NRL1 Form?

The NRL1 form tells HMRC that you want your UK rental income paid without deduction of UK tax. Typically, letting agents or tenants deduct tax when they pay rent to a non-resident landlord. You can apply for an NRL1 Form online or via post. Please note, to apply online you will need a UK Government Gateway ID, so non-resident landlords must often use the post option.

Why do overseas landlords need to fill out an NRL1 Form?

Overseas landlords who receive rental income from UK properties often find themselves paying more tax than they need to. This is because tax is typically deducted at 20% of their income, regardless of expenses or personal allowances. However, the NRL1 Form provides a solution for this problem.

By completing the form, non-UK resident landlords can inform HMRC that they want their UK rental income paid without any deduction of UK tax. This saves landlords money and allows them to keep cash that can be used when filing their Self Assessment tax return.

What information is required for the NRL1 Form

Applying for an NRL1 Form is a straightforward process that requires landlords to provide detailed information about their rental income and tax status in their home country. Landlords can complete the application process online or by mail, and must provide proof of their identity and address.

In addition, landlords must also provide information about their managing or letting agent, if applicable, as well as any other sources of UK income. It is essential to ensure that all the necessary details are correctly provided on the form to avoid delays or rejection.

Also read: How Do I Claim UK Tax Back from Overseas?

How to submit the NRL1 Form

Submitting the NRL1 Form is a simple process that can be done online or through the post. If you've lived in the UK before and have a Government Gateway ID, you can apply online, fill out the required information and submit it electronically. However, for those who have never lived in the UK before, they can complete an online form, print it out and send it to HMRC via post.

After submission, it usually takes around 30 days for HMRC to process and approve the application. It's important to note that applicants don't require a UTR number to apply. If you don't have one already, HMRC will create a Self Assessment record for you and provide you with a UTR.

Also read: Obtaining a UTR For HMRC From Abroad

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