Key Taxes for Non-Residential Landlords | Zuizz Business Services

1. Income Tax on UK Rental Income

As a non-resident landlord, you must pay UK tax on your rental income. The tax treatment depends on whether you register with HMRC’s Non-Resident Landlord Scheme (NRLS):

• Without NRLS registration: Your letting agent or tenant must deduct basic rate tax (20%) from your rental income before paying you.
• With NRLS registration: You can receive rent gross (without deductions) and report your taxable profits via Self-Assessment.

How Much Tax Will You Pay?

Income Tax Band Tax Rate 2024/25

Up to £12,570 0% (Personal Allowance)
£12,571 - £50,270 20%
£50,271 - £125,140 40%
Over £125,140 45%

✅ Tax Relief & Deductions

To reduce your tax bill, you can claim deductible expenses, including:

✔ Mortgage interest (restricted to basic rate relief)
✔ Property management fees
✔ Repairs and maintenance
✔ Service charges and ground rent
✔ Legal and accountancy fees

2. Capital Gains Tax (CGT) on UK Property Sales

If you sell a UK property, you must pay Capital Gains Tax (CGT) on the profit made.

CGT Rates for Non-Residential Landlords (2024/25)

Type of Property Basic Rate Taxpayer Higher Rate Taxpayer

Residential Property 18% 24%
Commercial Property 10% 20%

Important CGT Rules

✔ You must report and pay CGT within 60 days of selling a UK property.
✔ Some reliefs, such as Private Residence Relief, may reduce CGT if the property was previously your main home.
✔ If you sell at a loss, you can offset losses against other capital gains.

3. Stamp Duty Land Tax (SDLT) for Non-Residents

When purchasing property in the UK, non-residents must pay Stamp Duty Land Tax (SDLT) at higher rates.

SDLT Rates for Non-Residents

Property Price Standard SDLT Rate Non-Resident Surcharge Total SDLT Payable

Up to £250,000 0% 2% 2%
£250,001 - £925,000 5% 2% 7%
£925,001 - £1.5M 10% 2% 12%
Over £1.5M 12% 2% 14%

SDLT Considerations

✔ The 2% surcharge applies if you haven’t lived in the UK for at least 183 days in the last 12 months.
✔ If buying through a company, additional SDLT surcharges may apply.

How Our Accountancy Firm Can Help Non-Residential Landlords

At Zuizz, we offer specialist property tax services to help non-residential landlords:

✅ Register for the Non-Resident Landlord Scheme to receive rent without deductions.
✅ Prepare and file UK tax returns to ensure full compliance.
✅ Claim allowable deductions to reduce your tax bill.
✅ Advise on Capital Gains Tax planning for property sales.
✅ Ensure accurate SDLT calculations before property purchases.
✅ Help structure property investments tax-efficiently, whether as an individual, partnership, or company.

Need Expert Property Tax Advice?

Whether you're an overseas investor or an expat landlord, our team of UK property tax specialists can help you navigate complex tax rules and save money legally.

📞 Call Us Today
📩 Email Us
🌍 Book a Free Consultation

Let us handle your UK property tax affairs while you focus on growing your investment portfolio.