NRL1 covering letter, Non-Resident Landlord Scheme application
Editable covering letter accompanying form NRL1 (individual non-resident landlord application). Without NRL1 approval, letting agents or tenants paying over GBP 100 a week must withhold 20 percent basic-rate tax. NRL1 approval allows gross rent and you settle UK tax via annual Self Assessment. DOCX, PDF, and copyable on-page text.
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What it contains
How to use it
File online via gov.uk where possible
Primary route is HMRC Online Services NRL1 form. Use this covering letter for paper-route filings or to document your application and undertakings.
Submit as soon as possible after departure
Allow 8 to 12 weeks for HMRC processing. Until approval, your letting agent or tenant must continue 20 percent withholding from rental income.
Section 24 still applies
The mortgage-interest restriction is a UK property tax rule, not a residence rule. Non-resident landlords get the same 20 percent tax credit as UK-resident landlords, not full deduction.
Avoid cold-pitch firms
Standard NRL1 is fully self-serve. Genuine adviser need: complex property structures, ATED applicability (UK residential held via non-UK company), or pre-departure incorporation planning.
Copy the letter text
Prefer not to download? Copy the text below and paste into your own document.
To: HM Revenue and Customs Charity, Assets and Residence BX9 1AS Date: [DATE] NI Number: [NI] UTR: [UTR] Subject: NRL1 application, Non-Resident Landlord Scheme Dear Sir or Madam, I am submitting form NRL1 to apply for approval to receive UK rental income gross under the Non-Resident Landlord Scheme. Personal details: - Full name: [NAME] - NI number: [NI] - UTR: [UTR] - Date of departure from UK: [DATE] - Overseas address: [FULL OVERSEAS ADDRESS] - Statutory Residence Test status [YYYY/YY]: Non-UK-resident under [Automatic Overseas Test 3 / Test 1 / split-year case / other, SPECIFY] UK rental property details: - Property 1 address: [ADDRESS] - Letting agent (if any): [AGENT NAME AND ADDRESS] - Tenancy start date: [DATE] - Expected annual gross rent: GBP [X] [REPEAT block for additional properties] Compliance undertakings: I undertake to: 1. File annual UK Self Assessment returns reporting UK rental income (SA100 + SA105 UK Property + SA109 if first SA after non-residence + relevant supplementary pages). 2. Pay UK tax due on UK rental profits annually via Self Assessment. 3. Claim allowable expenses in accordance with HMRC's Property Income Manual. 4. Apply Section 24 mortgage-interest restriction (20 percent tax credit, not full deduction). 5. Notify HMRC of any change in UK rental holdings (acquisitions, disposals, agency changes). 6. Notify HMRC of return to UK residence (NRL1 approval lapses). Bank details for any refund (if applicable): - Bank name: [BANK] - Sort code: [SORT CODE] - Account number: [ACCOUNT] - Account name: [NAME] Notification to letting agent / tenant: I have informed my letting agent (where applicable) that the NRL1 application is in process. Until HMRC approval is confirmed, the agent / tenant continues to withhold 20 percent from rental income; withholding will cease upon HMRC NRL1 approval notice to the agent / tenant directly. If you require any further information to process this NRL1 application, please contact me using the details below. Yours faithfully, [NAME] [OVERSEAS ADDRESS] [PHONE] [EMAIL] Enclosures: Form NRL1; copy of tenancy agreement(s); letting agent contact details (where applicable). Statute: SI 1995/2902 (Non-Resident Landlords Scheme); F(No.2)A 2015 s.24 (mortgage-interest restriction); HMRC Property Income Manual.
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