Guidance

Apply as a company to receive UK rental income with no UK tax deducted

Use form NRL2 if you're a non-resident company landlord who wants to receive UK rental income without deduction of UK tax.

From:
HM Revenue & Customs
Published
30 April 2014
Last updated
17 September 2024 — See all updates

Who can apply

If you’re a non-resident company landlord with UK property, you may be able to receive rental income with no tax deducted. To apply, your company must:

  • be incorporated outside the UK
  • have no place of business in the UK 
  • not be regarded as resident in the UK for tax purposes

Exemptions

Your company will not need to register for Corporation Tax if you:

  • have tax deducted under the Non-resident Landlord Scheme

  • are not required to notify chargeability to Corporation Tax

  • have not received a notice to send a tax return

  • file an Income Tax return that is not a non-resident company Income Tax return SA700

Before you start

Read the following information to help you fill in the form.

Address

You should include the address of the company’s registered office or its principal place of business on the form. HMRC will accept a correspondence address instead of a business address if you can only provide a ‘care of’ or ‘PO Box’ address. You should attach an explanation of why you’ve not given your business address to the form.

If you have a business address but it is not a postal address, you should provide both the:

  • business address
  • correspondence address

Reference numbers

You should include your Unique Taxpayer Reference (UTR) if the company has completed either:

  • Self Assessment tax returns
  • Company tax returns

You should also provide the reference number for the letting agent that handles your UK rental income, if you have one.

How to apply

You cannot apply using the online service if you are applying through a tax agent. You should instead:

Apply online

If you use the online form, you’ll get a reference number that you can use to track the progress of your form. To apply, you’ll need to add your UTR or VAT registration number to your tax account. You can only add a VAT registration number to a business tax account.

You’ll need to sign in with your Government Gateway user ID and password (if you do not have a user ID, you can create one when you first try to sign in).

Apply now

If you cannot use the online service

  1. Get all of your information together before you start. You will fill the form in on-screen as you cannot save your progress.

  2. Fill in form NRL2.

  3. Sign the form (this must be signed by the company secretary or a duly-authorised officer of the company).

  4. Print and post it to HMRC, using the postal address shown on the form.

This file may not be suitable if you use assistive technology (such as a screen reader). If you need a more accessible format, email different.format@hmrc.gov.uk and tell us what format you need. It will help if you tell us what assistive technology you use. Read the accessibility statement for HMRC forms.

Email HMRC to ask for the form in Welsh.

After you’ve applied

We will approve your application if:

  • the application form is complete and correct

  • we are satisfied that you will follow all your UK tax obligations

Failure to provide extra information may result in the withdrawal of approval. Find out more information about when HMRC may withdraw approval from a landlord in what the Non-resident Landlords Scheme is.

Notification of approval

We will send a notice of approval including a reference number to either you, or your authorised tax agent.

We will also send a separate notice including a reference number to any tenants or letting agents named on the application form, authorising them to pay rental income without deducting tax.

All notices will give the date from when rental income should be paid without deducting tax. The date will usually be on the first day of the quarter in which the application was received. You will become liable to Corporation Tax from this date.

If you are not already registered for Corporation Tax we will set this up for you and notify you in writing.

Refusal of applications

We may refuse your application if we are not satisfied that:

  • the information given in the application is correct
  • you will follow all your UK tax obligations

If your application is refused we will send a notice which will explain how to appeal against the refusal. If you want to appeal you should appeal in writing within 90 days of the date of the notice.

If the appeal cannot be settled by agreement between both parties it will be sent to an independent appeal tribunal hearing.

Updates to this page

Published 30 April 2014
Last updated 17 September 2024 + show all updates

  1. Guidance has been updated to advise when you will be registered for Corporation Tax.

  2. First published.

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