Non-resident Company Landlord with UK Property

18/09/2024 - 6 minutes read
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Non-resident company landlord with UK property may be able to receive rental income with no tax deducted.

Non-resident company landlord with UK property is defined as a company which must:

  • – be incorporated outside the UK
  • – have no place of business in the UK
  • – not be regarded as resident in the UK for tax purposes
Non-resident Company Landlord with UK Property

Non-resident Company Landlord with UK Property

Exemptions

Non-resident company landlord with UK property will not need to register for Corporation Tax if you:

  • – have tax deducted under the Non-resident Landlord Scheme
  • – are not required to notify chargeability to Corporation Tax
  • – have not received a notice to send a tax return
  • – file an Income Tax return that is not a non-resident company Income Tax return SA700

Address

You should include the address of the company’s registered office or its principal place of business on the form. HMRC will accept a correspondence address instead of a business address if you can only provide a ‘care of’ or ‘PO Box’ address. You should attach an explanation of why you’ve not given your business address to the form.

If you have a business address but it is not a postal address, you should provide both the:

  • – business address
  • – correspondence address

Reference numbers

You should include your Unique Taxpayer Reference (UTR) if the company has completed either:

  • – Self Assessment tax returns
  • – Company tax returns

You should also provide the reference number for the letting agent that handles rental income for Non-resident company landlord, if you have one.

How to apply

You cannot apply using the online service if you are applying through a tax agent. You should instead:

Apply online

If you use the online form, you’ll get a reference number that you can use to track the progress of your form. To apply, you’ll need to add your UTR or VAT registration number to your tax account. You can only add a VAT registration number to a business tax account.

You’ll need to sign in with your Government Gateway user ID and password (if you do not have a user ID, you can create one when you first try to sign in).

Apply now

If you cannot use the online service

  1. Get all of your information together before you start. You will fill the form in on-screen as you cannot save your progress.
  2. Fill in form NRL2.
  3. Sign the form (this must be signed by the company secretary or a duly-authorised officer of the company).
  4. Print and post it to HMRC, using the postal address shown on the form.

Non-resident company landlord – After you’ve applied

HMRC will approve your application if:

  • – the application form is complete and correct
  • – they are satisfied that you will follow all your UK tax obligations

Failure to provide extra information may result in the withdrawal of approval. Find out more information about when HMRC may withdraw approval from a landlord in what the Non-resident Landlords Scheme is.

Notification of approval

HMRC will send a notice of approval including a reference number to either you, or your authorised tax agent.

HMRC will also send a separate notice including a reference number to any tenants or letting agents named on the application form, authorising them to pay rental income without deducting tax.

All notices will give the date from when rental income should be paid without deducting tax. The date will usually be on the first day of the quarter in which the application was received. You will become liable to Corporation Tax from this date.

If you are not already registered for Corporation Tax, Hmrc will set this up for you and notify you in writing.

Refusal of applications

HMRC may refuse your application if they are not satisfied that:

  • – the information given in the application is correct
  • – you will follow all your UK tax obligations

If your application is refused, HMRC will send a notice which will explain how to appeal against the refusal. If you want to appeal you should appeal in writing within 90 days of the date of the notice.

If the appeal cannot be settled by agreement between both parties it will be sent to an independent appeal tribunal hearing.

How can MCL Accountants help you with your queries on Non-resident company landlord with UK property?

Contact MCL Accountants on 01702 593 029 if you have any queries about Non-resident company landlord with UK property or if you need any assistance with the preparation and submission of your business accounts or self-assessment tax returns to HMRC.