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Expert UK tax filing support for international property owners

Navigating the UK tax system as a non-resident can be complex. PTI Returns make it simple

Are non-resident property owners required to file a tax return in the UK?

If you earn rental income from property in the UK, you’re required to file an annual Self Assessment tax return—regardless of whether you’re a UK resident or not.

At PTI Returns, we’ve been supporting non-resident UK property owners for over 30 years. Our dedicated services are designed to simplify the tax process and ensure you stay fully HMRC compliant.

Our UK services include:

UK PAYE income tax returns
UK self-assessed tax returns
UK self-employed tax returns
UK Capital Gains Tax assistance
UK Non-Resident Landlord Registration
UK request for receipt of gross rents Foreign rental income returns
Assistance with tax payments to HMRC
Liaising with your tax-resident accountant

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Our UK property tax return services & fees

Our standard fee for preparing a UK income tax return (business or property income) is £265.

This fixed fee covers most tax returns, including all necessary supplementary pages—no matter how many are required.

However, if your tax affairs are more complex—such as involving foreign income and associated reliefs, share schemes, complex residency or domicile issues and Capital Gains Tax (CGT) on chargeable disposals—then fees will be based on the time required to complete the return. In most cases, the total fee will not exceed £400.

We will always advise you of any additional charges before proceeding and aim to identify any such costs during our initial review of your tax position.

Note: A £50 surcharge applies if work is required to meet an urgent deadline.

What’s included in our fixed fee (£265)?

Completion of the Self-Assessment tax return (core form)
Preparation of all relevant supplementary pages
Calculation of tax liability or refund
Submission of the return to HMRC
VAT

What’s not included in the fixed fee?

Gathering information from third parties
Organising supporting documents (e.g. receipts)
Tax advice or forward planning
Responding to HMRC audits or enquiries

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UK landlord tax FAQs

What is the Non-Resident Landlords Scheme?

The Non-Resident Landlords Scheme (NRLS) is a scheme used for taxing the UK rental income of persons whose usual place of abode is outside the UK, commonly referred to as ‘non-resident landlords’.

The NRLS places responsibility on either the tenant or, in cases where there is one, the letting agent.

Non-resident landlords can offset the tax deducted from their UK rental income under the Non-Resident Landlords Scheme against their tax bill when they complete their UK self-assessment tax return.

They can also claim repayment of any excess tax deducted from their UK rental income.

Your property tax advisor can guide you through the process.

Non-resident landlords can also apply to HMRC to have their rental income received in gross.

Broadly speaking, the criteria are as follows:

UK tax affairs must be up to date

They do not have any other UK tax filing obligations

They do not expect to be liable for any UK income tax for the year in which they apply

It should be noted that where a non-resident landlord has successfully applied to receive the rental income gross, it does not mean that the income is exempt from UK tax; it remains taxable and a property tax return must be filed for each tax year in which they receive UK rental income.

What is a ‘property business’ defined as?

A property business is defined as an organisation which earns or receives:

rental income and other receipts from UK land or property
income from letting furnished rooms in your own home
income from Furnished Holiday Lettings (FHL) in the UK or European Economic Area (EEA)
premiums from leasing UK land
inducements to take an interest in letting a property (a reverse premium)

Do I have to pay Class 2 National Insurance?

Class 2 National Insurance contributions are due only if the taxpayer is self-employed. You have to pay Class 2 National Insurance if your profits are over £12,570 a year and what you do counts as running a business, for example, if all the following apply:

being a landlord is your main job
you rent out more than one property
you’re buying new properties to rent out

If your profits are under £6,725, you can make voluntary Class 2 National Insurance payments, for example, to make sure you get the full State Pension.

You don’t pay National Insurance if you’re not running a business – even if you do work like arranging repairs, advertising for tenants, and arranging tenancy agreements.

Do I pay tax if I am a UK non-resident landlord?

If you are a non-resident landlord earning rental income in the UK while living abroad, you are typically required to register for the Non-Resident Landlord Scheme (NRLS). You must also file a landlord tax return, reporting your rental income and expenses, and claiming allowable deductions. In most cases, you won’t need to pay tax directly to HMRC; instead, your tax liability is settled through the self-assessment process when you file your return. However, if you fail to register for the NRLS, your letting agent or tenant may withhold 20% tax at source from your rental income.

How much tax do I pay on rental income in the UK?

The rate at which you will pay tax on rental income in a given year is determined by your Income Tax band. Unlike resident landlords, non-resident landlords are typically not entitled to Personal Allowance.

If your income falls within these ranges:

Below the basic rate threshold of £12,570, you won’t pay any tax on rental income. (Personal Allowance threshold)
Between £12,570 and just below the higher rate threshold of £50,270, you’ll be subject to a 20% tax rate on your rental income
Between £50,270 and below £125,140 – 40% tax rate will apply
If your income exceeds £125,140 – 45%

If you earn less than £1,000 a year in rental income then you don’t have to report it to HMRC

What are the tax deadlines in the UK?

Tax Year: 6 April – 5 April

Income Tax Deadline: 31 January

Who are the non-resident individuals eligible for the Personal Allowance, and what are the distinctions between those who qualify for this allowance and those who do not among non-resident individuals?

You will be granted an annual tax-free UK Personal Allowance if one of the following conditions is met:

You are a British national.
You hold citizenship in a European Economic Area (EEA) country.
You have been employed by the UK government at any point during the tax year.

Additionally, you may be eligible for the Personal Allowance if it is stipulated in the double-taxation agreement between the UK and your country of residence.

How do I pay tax on my rental income?

If you are a resident landlord, you will need to report your rental income on your self-assessment tax return. If you are a non-resident landlord, you will need to register with HMRC under the Non-Resident Landlord Scheme (NRLS). Your letting agent or tenant will then deduct tax from your rental income at source.

Non-resident landlords will usually be required to file a property tax return

What are the tax implications of selling a rental property?

The tax implications of selling a rental property are as follows:

When selling a rental property in the UK, both resident and non-resident individuals will generally have to pay Capital Gains Tax (CGT) on the profit they make.

The amount of CGT you pay depends on your total capital gains for the year and your income tax rate band. For resident landlords, the standard CGT rules apply, with rates of 18% for basic rate taxpayers and 28% for higher or additional rate taxpayers.

Non-resident landlords may be subject to Non-Resident Capital Gains Tax (NRCGT), with different rates, typically 28% for individuals and 20% for corporations.

To reduce your CGT liability, you can explore various reliefs, such as Principal Private Residence Relief and other applicable exemptions, as well as make use of the annual tax-free allowance, known as the Annual Exempt Amount.

The availability and conditions of these reliefs can vary, so it’s advisable to seek professional advice to ensure compliance with current tax regulations.

I have a joint mortgage with my spouse. Can we split the rental income and expenses between us?

Yes, you can split the rental income and expenses between you, but only if you are both joint owners of the property. You will need to agree on how you want to split the income and expenses, and you will both need to declare your share on your self-assessment tax returns.

How are property business profits calculated in the UK?

You work out the net profit or loss for all your property lettings by:

adding together all your rental income
adding together all your allowable expenses
taking the expenses away from the income

What are allowable/deductible expenses?

Allowable expenses are things you need to spend money on in the day-to-day running of the property, like:

letting agents’ fees
legal fees for lets of a year or less, or for renewing a lease for less than 50 years
accountants’ fees
buildings and contents insurance
interest on property loans (please note that new rules have been in force since 5 April 2017)
maintenance and repairs to the property (but not improvements)
utility bills, like gas, water, and electricity
rent, ground rent, service charges
Council Tax
services you pay for, like cleaning or gardening
other direct costs of letting the property, like phone calls, stationery, and advertising

What are the tax rules regarding capital expenditure?

Allowable expenses don’t include ‘capital expenditure’ – like buying a property or renovating it beyond repairs for wear and tear. Expenses are generally ‘capital expenses’ when you:

add something to the property that wasn’t there before
alter, improve, or upgrade something that was existing
include the purchase of furnishings and equipment for the property

Capital expenses aren’t allowable and can’t be claimed against your rental income but you should keep records of them as you might be able to set them against Capital Gains Tax if you sell the property in the future

What happens if I make a ‘loss’ on my property business?

You can offset your loss against:

future profits by carrying it forward to a later year
profits from other properties (if you have them)

You can only offset losses against future profits in the same business.

What is Rent-a-Room relief?

The Rent a Room Scheme lets you earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your home. This is halved if you share the income with your partner or someone else.

You can let out as much of your home as you want. You must complete a tax return if you earn more than the threshold.

Are there any special tax rules for non-resident landlords?

You need to pay tax on your rental income if you rent out a property in the UK.

You may also need to pay tax if you make a gain when you sell residential property in the UK.
If you live abroad for 6 months or more per year, you’re classed as a ‘non-resident landlord’ by HM Revenue and Customs (HMRC) – even if you’re a UK resident for tax purposes. Letting agents or tenants of a non-resident landlord must:

deduct tax from the landlord’s UK rental income; and
pay the tax to HMRC

Am I considered a resident or nonresident for tax in the UK?

To determine the individual’s residency position, the ‘Statutory Residence Test’ is applied.

Under this test, you are considered a resident for UK tax purposes if you spend 183 days or more in the UK in a given tax year. The following non-exhaustive list of factors can also affect your UK residency position:

Where your main home is located
If you have a home in the UK
If you are working in the UK or abroad
If you have family and other ties to the UK

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