One of the most common assumptions I hear from landlords living overseas is:
“I don’t live in the UK anymore — so I assumed my rental income wasn’t something HMRC were concerned about.”
Unfortunately, that assumption causes more problems than almost anything else I see with non-resident landlords.
If you own a UK property and receive rental income, UK tax rules usually still apply, even if you live abroad.
This guide explains:
- Who counts as a Non-Resident Landlord (NRL)
- What HMRC expect you to report
- Where people commonly misunderstand double tax treaties and National Insurance
- Why many landlords are contacted years later
🎥 If you prefer to watch rather than read, this video explains why UK rental income must still be reported even if you live abroad, and how HMRC identify non-resident landlords. The video will be live on Sunday 1 February
1. What Is a Non-Resident Landlord?
You’re generally treated as a Non-Resident Landlord if:
- you live outside the UK for tax purposes
- but receive rental income from UK property
Your residence status does not remove UK reporting obligations.
UK rental income remains within HMRC’s scope regardless of where you live.
2. UK Rental Income Is Still UK-Taxable
This is the key point many landlords miss.
HMRC tax:
- UK property income
- based on the location of the property — not where the owner lives
This applies whether:
- the rent is modest
- the property was only rented temporarily
- you live overseas full-time
- the income is paid into a non-UK bank account
This confusion also affects people taxed through PAYE who own rental property, which I explain in my guide for Employed Landlords Who Own Rental Property.
If rental income exists, HMRC expect it to be reported.
3. The Non-Resident Landlord (NRL) Scheme
HMRC operate a specific scheme for Landlords who live abroad.
Under the NRL scheme:
- Letting agents (or tenants) may be required to deduct basic rate tax at source
- unless HMRC approve the landlord to receive rent gross
Importantly:
- approval to receive rent without deduction does not remove the need to file a Tax Return
- it simply changes how the tax is collected
This is where many landlords believe “everything is handled” — when it isn’t.
4. Why HMRC Often Contact Non-Resident Landlords Years Later
HMRC don’t usually check rental income in real time.
They often:
- gather data gradually
- receive information from agents, councils, lenders and platforms
- match records retrospectively
This is why landlords are frequently contacted years after rental income started, not immediately.
Not hearing from HMRC earlier doesn’t mean the position was correct — it usually means it hadn’t been flagged yet.
- If you’ve never heard from HMRC and assumed that meant everything was fine, I explain why that assumption is risky in I Never Received a Letter from HMRC – Does That Mean My Rental Income Is Fine
- HMRC checks into rental income are usually driven by data rather than suspicion, which I explain in What HMRC Check First When You Own a Rental Property.
5. Double Tax Treaties – What They Actually Do
Double tax treaties are widely misunderstood.
A tax treaty:
- helps prevent the same income being taxed twice
- does not remove the requirement to report UK rental income
- does not automatically cancel UK tax
In most cases:
- UK rental income remains taxable in the UK
- any overseas tax paid may be considered separately
- reporting obligations still apply
This is a common issue for landlords living overseas, where UK property income still falls under UK tax rules regardless of where the landlord resides.
6. National Insurance – A Common Practical Misunderstanding
National Insurance often causes confusion for non-resident landlords.
To be clear:
- you do not need National Insurance contributions to report UK rental income
- you do not need to be working in the UK
- and not having an NI number does not prevent you from registering for Self Assessment
Rental income is reported through Self Assessment, not through National Insurance.
This misunderstanding often leads Landlords living overseas to delay registration unnecessarily, when in reality their rental income can still be declared correctly.
7. Common Situations That Still Trigger HMRC Attention
Non-resident Landlords are often contacted where:
- rental income was never declared
- only part of the income was reported
- no Self Assessment Return was filed
- the Landlord assumed overseas residence removed UK obligations
These situations are usually solvable — but ignoring them makes things harder.
8. What To Do If You’re Unsure
If you’re unsure whether your UK rental income has been declared correctly:
- don’t panic
- don’t assume it’s too late
- check your position calmly
HMRC have established processes for bringing matters up to date.
Handled properly, many cases are resolved without unnecessary stress or escalation.
If UK rental income hasn’t been declared correctly — or at all — HMRC have specific routes for bringing matters up to date, which I explain in my guide on Fixing Undeclared Rental Income.
Next Step
If you live overseas and receive UK rental income — or you’re unsure whether your reporting is correct — professional advice can help you clarify your position before issues escalate.
If you’d like professional help reviewing your position, you can book a paid diagnostic consultation with us to understand your next steps.