Rental Income and Taxation
As a landlord, you are responsible for assessing your own tax for rent received. Below is some basic guidance on taxation matters relevant to landlords; however we would always recommend you seek independent financial advice from an accountant on tax matters.
- Rental income is liable to tax, although a number of expenditure items can be offset against rental profit. You would also need to pay Class 2 National Insurance if the work you do counts as running a property business.
- Overseas Landlords Under the Non-resident Landlord (NRL) Scheme, your lettings agent will need to deduct tax from the rental income and pay the tax directly to HM Revenue & Customs. Alternatively, landlords living overseas can apply for approval to receive rental income with no tax deducted. Full details of the NRL Scheme are available from HMRC.