NRL1 is the HMRC application an individual landlord whose usual place of abode is outside the UK uses to receive UK rent without tax deducted. Without approval, the letting agent, or the tenant if rent is over £100 a week, must take basic rate tax off the rent and pay it to HMRC each quarter. With NRL1 approval, the rent is paid in full and you deal with the tax through Self Assessment instead. Companies use NRL2 and trustees use NRL3.
Everything below comes from GOV.UK's NRL1 application guidance and HMRC's Non-resident Landlords Scheme guidance notes, as of October 2026.
Who the Non-resident Landlords Scheme applies to
The scheme taxes the UK rental income of people whose 'usual place of abode' is outside the UK. For individuals, HMRC normally treats an absence from the UK of 6 months or more as meaning your usual place of abode is abroad.
Here's the point many landlords miss: this isn't the same test as tax residence. GOV.UK says it's possible to be resident in the UK for tax but still have a usual place of abode outside it, so being UK resident for tax doesn't by itself keep you out of the scheme.
Who deducts the tax if you don't apply
| Who pays you the rent | What happens without NRL1 approval |
|---|---|
| A letting agent | The agent must operate the scheme and deduct tax, whatever the rent, even if it's £100 a week or less |
| A tenant, with no agent, paying more than £100 a week on average | The tenant must deduct tax and pay it to HMRC |
| A tenant paying £100 a week or less | The tenant doesn't have to use the scheme unless HMRC says so |
Tax is worked out at the basic rate of income tax on the rent less deductible expenses, and accounted for each quarter to 30 June, 30 September, 31 December and 31 March. The scheme year runs from 1 April to 31 March.
When HMRC approves an NRL1
HMRC will give approval, and register you for Self Assessment, if any of these is true:
- your UK tax affairs are up to date
- you've never had any UK tax obligations
- you don't expect to be liable to UK tax for the tax year in which you apply
It also needs the form to be complete and correct. HMRC approves after an initial check and may check in more detail later; if you don't supply extra information when asked, approval can be withdrawn.
Couples who own a UK property together
If spouses or civil partners jointly own a UK property and both have their usual place of abode outside the UK, each is treated as a separate landlord. That means each of them has to send their own NRL1 if they both want the rent paid with no tax deducted. A letting agent can only pay gross to the person named on HMRC's authorisation, so one spouse's approval doesn't cover the other.
If only one of you lives abroad, the scheme applies only to that person's share of the rent. The UK-resident spouse doesn't need approval, but does have to tell HMRC they receive UK property income.
When you can apply
If you're leaving the UK to live abroad, apply no more than 3 months before you leave: HMRC can't consider an application earlier than that. If your usual place of abode is already outside the UK, you can apply straight away.
How to apply
- Gather your principal residential address abroad, your Unique Taxpayer Reference if you know it, your National Insurance number if you have one, and the reference of the letting agent handling the rent.
- Apply online with HMRC's service, signing in or creating sign in details first.
- If you can't use the online service, fill in form NRL1 on screen, sign it yourself (the non-resident landlord has to sign) and post it to the address on the form.
- If you want a tax agent to act for you, don't use the online service: send the 64-8 authorisation with the print and post form.
If you can only give a 'care of' or PO Box address, HMRC accepts a correspondence address, but attach a note explaining why you've not given your residential address.
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After you apply
- HMRC sends a notice of approval to you, or your agent, and a separate notice to each tenant or letting agent named on the form.
- The notices show an approval reference and the date from which rent should be paid gross, usually the first day of the quarter in which HMRC received the application.
- If HMRC refuses, you can appeal in writing within 90 days of the notice.
- Approval doesn't pass on automatically: if you change letting agent or tenant and HMRC hasn't been told, the new payer should deduct tax.
HMRC can also withdraw approval if it's no longer satisfied the information was correct or that you'll follow your UK tax obligations, or if you don't supply information it asks for. It sends you a notice with the reason and the date, tells your agent or tenant when to start deducting again, and you have 90 days to appeal in writing.
Approval also ends if a non-resident landlord dies; a new payee abroad would need to apply again. Once approved, you report the rent on your Self Assessment return: the SA100 guide covers the main return, and SA109 is the page for residence. Keep an eye on the Self Assessment deadlines.
The verdict
If you're moving abroad and keeping a UK property let, apply for NRL1 in the 3 months before you go, so the rent keeps arriving in full. It doesn't make the rent tax free: it moves the tax to your Self Assessment return, so keep your filings up to date or approval can be withdrawn. And tell HMRC whenever the letting agent or tenant changes.
Purchasing the property in the first place usually means a stamp duty return, and our stamp duty land tax return guide explains the paper version.
Frequently asked questions
What is an NRL1 form?
It's the application an individual non-resident landlord uses to ask HMRC for approval to receive UK rental income without UK tax deducted.
Who has to deduct tax under the Non-resident Landlords Scheme?
Letting agents of a non-resident landlord always do. Tenants with no letting agent must deduct tax if the rent is more than £100 a week.
When can I apply for NRL1?
If you're leaving the UK, no more than 3 months before you leave. If your usual place of abode is already abroad, you can apply immediately.
Does NRL1 approval mean my rent is tax free?
No. HMRC registers you for Self Assessment, and you report and pay tax on the rent through your tax return.
What form do companies and trusts use instead of NRL1?
Companies use NRL2 and trusts use NRL3.
