Do I pay tax twice on UK rent if I live abroad?

Usually not. The UK taxes rent from UK property first. Your country of residence may tax it too, but most treaties then let you deduct the UK tax from your local bill.

My agent deducts 20%. Is that all I pay?

Not necessarily. The 20% is a payment on account on rent minus the expenses the agent paid. Your final tax comes from your Self Assessment return: it can be lower, often with a refund if you have the Personal Allowance, or higher if your profit reaches the 40% band.

Can I stop the agent deducting tax?

Yes, by applying to HMRC on form NRL1 to receive rent gross. HMRC normally approves it if your UK tax affairs are up to date or you don't expect to owe UK tax. You still file a Self Assessment return.

Can I deduct my mortgage interest?

Not as an expense. You get a tax reduction of 20% of the interest, limited by your rental profit and your income above the Personal Allowance. The rest carries forward.

Do I have to file a tax return as a non-resident landlord?

Yes, if you have UK rental income, even when the agent deducted tax or HMRC approved gross payment. You file form SA100 with the SA105 property pages and the SA109 residence pages.

What changes for non-resident landlords in 2027?

From 6 April 2027 rental income has its own rates: 22%, 42% and 47%, already law. The 2026 Budget proposes 24%, 44% and 49% instead, which Parliament has not passed yet. Mortgage interest relief would follow the new basic rate.

Free tool · United Kingdom

UK non-resident landlord tax calculator

If you live outside the UK and let a property there, your agent or tenant may deduct 20% under the Non-resident Landlord scheme, and Self Assessment then settles the real bill. This calculator works out both for 2025-26 and 2026-27, and shows whether you owe more or get money back.

FIG-NRL · Your UK let

Tax year

Rent for the tax year

Who collects the rent?

A letting agentThe tenant pays me directlyHMRC approved me to receive rent gross (NRL1)

Expenses the agent pays, its fee included

Expenses you pay yourself

Mortgage interest for the year

Unused interest from earlier years

Allowable: agent fees, repairs (not improvements), insurance, ground rent and service charges, council tax and utilities you pay, accountancy, cleaning. Mortgage interest goes in its own field: it is relieved at 20%, never deducted.

Are you entitled to the UK Personal Allowance?

Yes: I'm a British or EEA national, or a treaty gives me itNo

British citizens, EEA nationals and residents or nationals of some treaty countries can claim it on form SA109. If unsure, check both options.

FIG-SA · Your UK tax estimate

Repayment due to you

£3,219.20

Final tax minus what was withheld

Withheld under the NRL scheme

£3,219.20

Final UK tax for the year

£0.00

Rental profit (rent minus expenses): £15,796.00
Personal Allowance: − £12,570.00
Taxable income: £3,226.00
Tax at 20%, 40% and 45%: £645.20
Mortgage interest relief at 20%: − £645.20
Final tax: £0.00

£774.00 of mortgage interest could not be relieved this year. It carries forward to next year's return.

No UK tax is due on this rent, so you could apply on form NRL1 to receive it without deduction in future.

Self Assessment for 2025-26

Paper return: by October 31, 2026.
Online return and payment: by January 31, 2027. Non-residents need software that supports form SA109, or a paper return.

An estimate under the rules in force on 9 November 2026 for 2025-26 and 2026-27, not tax advice. It assumes the rent is your only UK income and that you are not UK resident for the whole year. Check your own case with HMRC.

How to use it

1Choose the tax year and enter the rent for it, and say who collects the rent.
2Add the allowable expenses, split by who pays them, and your mortgage interest, which gets its own 20% relief.
3Say whether you are entitled to the Personal Allowance, then read the NRL withholding, the final tax and the balance.

How to use the result

How the Non-resident Landlord scheme works

If your usual home is outside the UK, a letting agent must deduct 20% from the rent minus the expenses it pays for you, and pay it to HMRC every quarter. A tenant who pays you directly does the same on the gross rent if it averages more than £100 a week. With HMRC's approval on form NRL1 the rent is paid in full instead.

Withholding is not the final bill

What is deducted is a payment on account. Your actual tax is worked out on your Self Assessment return, and the deduction is credited against it. If the Personal Allowance or the expenses bring the bill below what was withheld, HMRC repays the difference.

Mortgage interest is relieved at 20%

Since 2020 residential landlords cannot deduct mortgage interest. Instead they get a reduction of 20% of the lowest of the interest, the rental profit and the income above the Personal Allowance. What cannot be used carries forward, and the agent never nets interest off under the NRL scheme.

Who gets the Personal Allowance

British citizens, EEA nationals, people who worked for the UK government, and residents or nationals of countries whose tax treaty gives it. Residents of many countries without it pay 20% from the first pound of profit. You claim it every year on form SA109.

Rates from April 2027

From 2027-28, rental income has its own rates of 22%, 42% and 47% under the Finance Act 2026. The 2026 Budget proposes raising them to 24%, 44% and 49%, which is not law yet. This calculator covers 2025-26 and 2026-27, which use the ordinary 20%, 40% and 45%.

What this calculator leaves out

Other UK income, which changes the bands. Split-year treatment and the residence tests. Joint ownership, where each owner declares their share. Capital gains on a sale. And tax in your country of residence, where a credit for UK tax is usually claimed.

Official sources

Rules checked against these sources on November 9, 2026.

Keep the decision connected

Guides and workflows for the result

Use the calculation as a starting point, then examine the assumptions and carry the result into the matching PropFlow workflow.

FinanceLandlord Tax Deductions: What You Can Claim

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Questions

Do I pay tax twice on UK rent if I live abroad?: Usually not. The UK taxes rent from UK property first. Your country of residence may tax it too, but most treaties then let you deduct the UK tax from your local bill.
My agent deducts 20%. Is that all I pay?: Not necessarily. The 20% is a payment on account on rent minus the expenses the agent paid. Your final tax comes from your Self Assessment return: it can be lower, often with a refund if you have the Personal Allowance, or higher if your profit reaches the 40% band.
Can I stop the agent deducting tax?: Yes, by applying to HMRC on form NRL1 to receive rent gross. HMRC normally approves it if your UK tax affairs are up to date or you don't expect to owe UK tax. You still file a Self Assessment return.
Can I deduct my mortgage interest?: Not as an expense. You get a tax reduction of 20% of the interest, limited by your rental profit and your income above the Personal Allowance. The rest carries forward.
Do I have to file a tax return as a non-resident landlord?: Yes, if you have UK rental income, even when the agent deducted tax or HMRC approved gross payment. You file form SA100 with the SA105 property pages and the SA109 residence pages.
What changes for non-resident landlords in 2027?: From 6 April 2027 rental income has its own rates: 22%, 42% and 47%, already law. The 2026 Budget proposes 24%, 44% and 49% instead, which Parliament has not passed yet. Mortgage interest relief would follow the new basic rate.