At The Property Partnership, we deal with many “Overseas” or “Non-UK-Resident” landlords who rent out their properties in Aberdeen.

If a landlord’s normal place of abode is not the UK (usually for 6 months or longer) they will be considered by the HMRC as non-resident for tax purposes.

Under the Finance Act 1995, this requires the Letting or Managing Agent to withhold tax from the landlord’s net rental income at the current Basic Tax Rate. The tax will then be passed on to the Inland Revenue on a quarterly basis.

How to avoid tax being deducted from your rental income

A landlord should apply to Car-Charity, Assets and Residence – Residency for an ‘Approval Number’. This will be issued to the Agent who is then authorised to pay the rental income to the landlord without deducting tax. For individuals, the application is made on Form NRL1. (NRL2 and 3 apply to non resident companies and trusts respectively)

Further information can be obtained from or we would recommend that if in any doubt, you should consult your tax advisor.

(Property Partnership Handy Hint – All the information you require can be found at the following link: Just click here or copy and paste it into your browser. A number of our landlords work in the Oil and Gas Sector and therefore can be relocated abroad from time to time. There is no benefit in paying tax unnecessarily so it’s worth doing the research. Also if you have any questions, you can give them a call. I have found them to be very helpful.)

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