How does the Non-Resident Landlord Scheme work?

How does the Non-Resident Landlord Scheme work? If you live abroad for 6 months or more a year, your UK letting agent or tenant takes basic rate tax (20% in 2026-27) off your rent for HMRC, unless HMRC approves you to receive it in full. You can be. The scheme looks at your usual place of abode, and HMRC normally treats an absence from the UK of 6 months or more as meaning that is outside the UK, even if you are UK resident for tax. Only if the rent is more than £100 a week, which is £5,200 a year, or HMRC tells them to. A letting agent must operate the scheme whatever the rent. No, not for residential property. HMRC's notes for agents say no interest can be deducted on residential property, although allowable costs such as repairs and agent fees can be. Read the full answer, with every source, at rightotax.co.uk.