What tax does a non-resident landlord pay on UK rental income?

Rental profit is gross rent less allowable revenue expenses such as letting agent fees, insurance, repairs, ground rent and service charges, accountancy fees and, for individuals, mortgage interest relief given as a basic rate tax reduction rather than a deduction. UK residential lettings are treated as one property business, so losses on one property offset profits on another.

Losses carry forward against future UK rental profits indefinitely but cannot be set against other UK income or used to create a repayment in the loss-making year.

The profit is reported on the UK property pages of a Self Assessment return, with tax due by 31 January following the tax year, alongside any payments on account for the following year. Tax already withheld under the Non-resident Landlord Scheme is credited against the final liability.

Where withholding has exceeded the actual liability, for example because expenses were higher than the agent knew about, the excess is repaid or credited after the return is filed.

Our fixed monthly packages for a UK limited company start at £89 plus VAT and run to £169 and £289 plus VAT as bookkeeping, VAT, payroll and reporting are added. One-off filings are sold at fixed prices, and the Companies House fees we pay for you are charged at cost with no VAT added. Overseas owners are quoted on exactly the same published prices as UK-resident clients.

Rates, thresholds and deadlines here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.