UK Property & the Non-Resident Landlord Scheme 2025

The UK property market continues to attract international investors, particularly in thriving cities like Manchester. For landlords living overseas, however, managing rental properties from afar comes with specific legal obligations. One key regulation is the Non-Resident Landlord Scheme (NRLS), which applies to individuals whose usual place of abode is outside the UK.

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Whether you’re an established landlord or just starting your investment journey from abroad, understanding the NRLS is essential. At CasaCity, we work closely with non-resident landlords to support compliance and unlock the full potential of their property portfolios through expertly managed serviced accommodation and tailored furnishing packages.

• The NRLS requires letting agents and tenants to deduct tax from rental income paid to landlords whose usual place of abode is outside the UK, unless HMRC approval is granted.
• Non-resident landlords can apply to receive rental income without tax deducted if their UK tax affairs are up to date or if they qualify for exemption.
• CasaCity provides fully compliant property management for overseas landlords, ensuring all NRLS responsibilities are met.
• Our expertise in serviced accommodation and furnished rentals in Manchester helps landlords increase yields and reduce voids.

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The Non-Resident Landlord Scheme, administered by HMRC, is a tax compliance framework that applies to individuals, companies, trusts, and partnerships who own rental property in the UK but live overseas. The scheme ensures that income tax is paid on rental income from UK property, even if the landlord resides outside the UK for most or all of the tax year.

According to HMRC, a landlord is considered "non-resident" for the purposes of the NRLS if their usual place of abode is outside the UK - typically meaning they are away for six months or more.

If you're a non-resident landlord, your rental income is still taxable in the UK. However, there are specific ways to manage this liability, especially if you’re working with a professional property management company like CasaCity.

Under the NRLS, letting agents (or tenants, where no agent is used) must deduct basic rate tax from the rent before passing it on to the landlord, unless the landlord has received approval from HMRC to receive their rental income gross.

Landlords can apply for this approval by submitting one of the following forms to HMRC:

• NRL1 (for individuals)
• NRL2 (for companies)
• NRL3 (for trusts or estates)

Once granted, this approval allows rental income to be paid without any tax deductions at source. Instead, the landlord is responsible for declaring and paying tax through self-assessment.

For overseas landlords, appointing a letting agent is not just convenient - it’s often the most efficient way to remain compliant. At CasaCity, we take care of all your NRLS obligations, including:

• Registering your property under the scheme
• Deducting and submitting the appropriate tax (if required)
• Assisting with HMRC applications to receive gross rental income
• Submitting accurate quarterly returns and annual reports

By managing these administrative tasks, we help landlords avoid costly penalties and focus instead on the performance of their investment.

Beyond compliance, the key to successful property investment - especially from abroad - is maximising your returns. One way to do this is through serviced accommodation, which often yields higher returns than traditional long-term lets.

Manchester is an ideal city for short-term rentals, thanks to its strong visitor economy, growing business scene, and upcoming regeneration projects. At CasaCity, we specialise in converting properties into high-performing serviced apartments, providing:

• Dynamic pricing strategies for short-term stays
• Professional tenant management and guest communication
• End-to-end operations, from check-in to cleaning

Our landlords benefit from consistent occupancy, premium nightly rates, and hands-off management.

A well-furnished property attracts better guests and justifies premium rates. That’s why CasaCity also offers stunning, investment-ready furniture packs tailored to serviced accommodation. Whether you choose our Silver, Gold, or Platinum packages, your property will be styled for comfort, quality, and visual impact.

Each package is designed with durability and guest experience in mind, ensuring your property stands out on platforms like Airbnb and Booking.com. Professionally dressed interiors also reduce maintenance costs and protect your investment long-term.

The Non-Resident Landlord Scheme is a vital aspect of investing in UK property while living overseas. Navigating its requirements can be overwhelming, but it doesn’t have to be. With CasaCity as your property partner, you can enjoy peace of mind knowing your NRLS compliance is handled professionally, while also boosting your rental income through premium serviced accommodation strategies.

We’re here to support investors from across the globe in making the most of their Manchester property portfolio - with style, simplicity, and maximum return.