The Non-resident Landlords Scheme - HM Revenue & Customs

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CHAPTER 11 - APPROVAL TO RECEIVE RENTAL INCOME WITH NO TAX DEDUCTED • How non-resident landlords apply 11.1 and 11.2 - Sovereign Immunity 11.3 • When can an application be made? 11.4 • How to complete the application form 11.5 - Who can sign the application form? - Principal residential address: ‘care of’ and 11.6 PO Box addresses 11.7 - UK Tax Office and tax reference number 11.8 • Approval of applications 11.9 and 11.10 • Who receives notification of approval? 11.11 to 11.13 • Refusal of application for approval 11.14 and 11.15 • Withdrawal of approval 11.16 to 11.18 • Changes of letting agent or tenant 11.19 • If a non-resident landlord dies 11.20 • Irish charities, superannuation schemes and insurance companies 11.21 CHAPTER 12 - RECORD KEEPING • General 12.1 • Information to be provided 12.2 and 12.3 • Records 12.4 to 12.8 • Penalties 12.9 • The HMRC audit 12.10 to 12.13 • Examining letting agents’ and tenants’ records 12.14 to 12.18 • Selection for inspection 12.19 • Notice of inspection - Letting agents 12.20 - Tenants 12.21 • Selecting a sample: letting agents 12.22 and 12.23 • Reporting the results 12.24 to 12.28 - Extrapolation 12.29 and 12.30 • Interest 12.31 • Penalties 12.32 and 12.33 • Audit protection 12.34 • What if the non-resident landlord has paid the tax? 12.35 • Other issues 12.36 __________________________________________________________________________________________ Non-resident Landlords Scheme: Guidance Notes (01/12) 4
CHAPTER 1 1 INTRODUCTION What is the Non-resident Landlords Scheme? 1.1 The Non-resident Landlords (NRL) Scheme is a scheme for taxing the UK rental income of persons whose ‘usual place of abode’ is outside the UK (see paragraph 2.3 below). For convenience, these guidance notes refer to such persons as ‘non-resident landlords’. The Scheme applies to UK rental income (see Chapter 9 below) paid to non-resident landlords from 6 April 1996. Different arrangements apply to UK rental income paid before 6 April 1996. 1.2 Letting agents of a non-resident landlord must: • deduct tax from the landlord’s UK rental income; and • pay the tax to HMRC’s Accounts Office, Shipley (see paragraph 1.16 below). 1.3 Where there is no letting agent, tenants who pay rent of more than £100 a week to a non-resident landlord must: • deduct tax from the landlord’s UK rental income; and • pay the tax to HMRC’s Accounts Office, Shipley (see paragraph 1.16 below). Tenants who pay rent of £100 a week or less do not have to operate the scheme unless they are told to do so by HMRC (see Chapter 6 below). Letting agents must operate the scheme regardless of the amount of the rent they collect - even if it is £100 a week or less. 1.4 For the purposes of the NRL Scheme, the year runs from 1 April to the following 31 March. Letting agents and tenants who have to operate the Scheme must account for tax each quarter - that is, for the three-month periods ending on 30 June, 30 September, 31 December and 31 March (see Chapter 4 [letting agents] and Chapter 6 [tenants] below). __________________________________________________________________________________________ Non-resident Landlords Scheme: Guidance Notes (01/12) 5
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searching under ‘UK/Ireland’ an
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Examining letting agents’ and ten
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12.27 If the auditors have examined
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their rental income on their tax re
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C ‘Care of’ addresses 11.7 Cert
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- liability to tax 1.13 - 1.14 - wh
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