The Non-resident Landlords Scheme is a scheme for taxing the UK rental income of non-resident landlords. 

The scheme requires UK letting agents to deduct Basic Rate tax from any rent they collect for non-resident landlords. If non-resident landlords don't have UK letting agents acting for them, and the rent is more than £100 a week, their tenants must deduct the tax. When working out the amount to tax the letting agent/tenant can take off deductible expenses. 

Letting agents and/or tenants don't have to deduct tax if HM Revenue & Customs (HMRC) tells them not to HMRC will tell an agent/tenant not to deduct tax if non-resident landlords have successfully applied for approval to receive rents with no tax deducted. But even though the rent may be paid with no tax deducted, it remains liable to UK tax. So non-resident landlords must include it in any tax return HMRC sends them.

          For individuals download the NRL1 Form here
          For companies download trhe NRL2 Form here
          For trustees download the NRL3 Form here

When approval has been given, HM Revenue & Customs sends

• a notice of approval to receive rent with no tax deducted to the non-resident landlord, and
• a separate notice to the letting agents or tenants named on the application form authorising them to pay rent to the non-resident landlord without deducting tax.

Authority to pay rent to a non-resident landlord with no tax deducted is generally backdated to the beginning of the quarter in which HMRC receives the non-resident landlord's application. As the tax year for the Non-resident Landlords Scheme starts on 1 April, the quarters are the three-month periods that end on 30 June, 30 September, 31 December and 31 March. So if a non-resident landlord applies to us on, say, 20 September, the authority we send to his letting agent/tenant will usually take effect from 1 July.