Non-resident tax return

If you’ve relocated from the UK, you might still have to submit a tax return, particularly if you’re renting out property. Failing to do so could lead to financial penalties.

In general, you’re only taxed on income earned within the UK. Income generated from UK property is typically taxed in the UK regardless of your place of residence.

However, depending on your nationality and residency status, you might be eligible for the UK personal tax allowance, set at £12,570 for the tax years 2021/22 to 2025/26. British nationals automatically qualify for this allowance, meaning no UK tax is owed on rental profits below £12,570 (assuming no other UK income).

Non-British nationals may also claim the UK personal tax allowance under double taxation treaties with the EU and certain other countries. Feel free to contact us to confirm your eligibility for the UK tax allowance.

Tenants or letting agents are responsible for deducting basic rate tax from rent paid to non-resident landlords. To continue receiving UK rental income gross while residing abroad, you should submit Form NRL1 to the HMRC Centre for Non-Residents.

HMRC will then authorize rents to be paid to you gross and inform the tenant or agent accordingly. Your rental profits will still be taxable in the UK, but this arrangement aids cash flow.

Do You Need to File a Tax Return?

You may need to complete a tax return if:

• • You receive UK rental income.
  • You’re a director of a UK company.
  • You earn income in the UK from self-employment.
  • You perform some or all of your work in the UK while not residing there.
  • You receive profits from a UK partnership.
  • You make capital gains from selling or disposing of assets in the UK.

Non-resident tax regulations can be intricate. If you’re unsure, please don’t hesitate to get in touch.

Are You Leaving the UK Permanently?

As of 6th April 2013, the Statutory Residence Test is in effect. Please refer to our article on this topic: “Are You Leaving the UK Permanently?”