NRL1 form
The NRL1 form is the HMRC application that an individual non-resident landlord uses to receive UK rental income gross, meaning with no basic-rate tax deducted at source by a letting agent or tenant. It sits within the Non-Resident Landlord Scheme, and according to HMRC's guidance on applying to receive rental income without UK tax deducted, approval does not exempt the landlord from UK tax; it changes only how the tax is collected, with any liability settled through Self Assessment instead.
Who needs to complete an NRL1 form
You complete an NRL1 if you are an individual whose usual place of abode is outside the UK and you receive rent from UK property. Under the Non-Resident Landlord Scheme, your letting agent, or your tenant where there is no agent and the rent exceeds £100 a week, must otherwise deduct basic-rate tax at 20% from your rent and pay it to HMRC each quarter. The NRL1 is how you ask HMRC to switch that off and pay you in full. The form is specifically for individuals: companies use the NRL2 and trustees use the NRL3. Where a property is jointly owned, each owner is a separate landlord and must submit their own application.
What approval does and does not do
Approval means your agent or tenant can pay you the rent gross, which improves your cash flow because tax is no longer held back before you receive it. It does not make the income tax-free. You still declare your UK rental profit and pay any tax due through Self Assessment, deducting allowable expenses and applying the same rules as a UK-resident landlord, including the Section 24 finance cost restriction. HMRC grants approval where your UK tax affairs are up to date or you do not expect to owe UK tax, so the route rewards landlords who file on time.
How to apply
You can apply online through HMRC, for which you need a Government Gateway user ID, or by post using the paper NRL1 form. The application asks for your personal details, details of the UK property and your letting agent if you have one, and confirmation of your tax position. From working with self-managing landlords who let UK property while living abroad, we find the application itself is straightforward; the part that catches people out is afterwards, because gross rent makes the annual Self Assessment return more important, not less, since nothing has been collected in advance. Once HMRC approves the application, it notifies your agent or tenant, who then stops deducting tax and pays you the full rent.
Keeping records once you are paid gross
When rent arrives gross, the responsibility for setting aside and reporting the right amount of tax sits entirely with you. Landlords using August keep rent and expenses recorded in HMRC-aligned categories throughout the year through Making Tax Digital software, so the Self Assessment figures are ready rather than reconstructed from abroad each January. For the wider picture of how UK rental income is taxed, see our guide to how rental income is taxed in the UK.
Frequently asked questions
What is the NRL1 form used for?
It is the form an individual overseas landlord submits to HMRC to receive UK rental income without tax being deducted at source. Without it, a letting agent or tenant must withhold 20% from the rent and pay it to HMRC.
Does an approved NRL1 mean I do not pay UK tax?
No. Approval only stops tax being withheld before you are paid. You remain liable for UK tax on your rental profit and must report it through Self Assessment, where any tax due is calculated after allowable expenses.
What is the difference between NRL1, NRL2 and NRL3?
The NRL1 is for individuals, the NRL2 is for companies, and the NRL3 is for trustees. They all apply for the same outcome, approval to receive UK rental income gross under the Non-Resident Landlord Scheme.
How do I submit the NRL1 form?
You can apply online with a Government Gateway user ID or by post using the paper form. Each co-owner of a jointly owned property must apply separately for their own share of the rent.
