The Non-resident Landlords Scheme - HM Revenue & Customs

• the year ended 31 March to which the certificate relates;
and
• the tenant’s total liability to tax for the year ended 31
March in respect of the landlord.
In addition, certificates must contain a declaration by the tenant
that the particulars contained in the certificate are, to the best of
their knowledge, correct and complete.
8.9 Tenants may include additional information on the certificate if
they wish.
8.10 Tenants can use a copy of the certificate (form NRL6) available
from the HMRC website, NRL6 (PDF 22KB).
8.11 Non-resident landlords should keep certificates. When they
complete their UK Tax Return they can set off the tax shown
on the certificate against their overall UK tax liability
(provided, of course, the landlord has actually suffered
deduction of the tax shown on the certificate). Landlords may
be asked to provide the certificate to HMRC as evidence in
support of their self assessment.
8.12 The amount of tax shown on the certificate will probably not be
identical to the non-resident landlord’s tax liability in respect of
the profits of his or her rental business. This is because the
rules of the NRL Scheme are not the same as the rules for
taxing the profits of a rental business. For example:
• tenants must calculate rental income paid less expenses
paid whereas landlords must calculate rental income
accrued less expenses accrued;
• tenants cannot deduct expenses paid by the landlord;
• tenants deduct expenses where they can reasonably be
satisfied the expenses would be allowable when
computing the profits of the landlord’s rental business
whereas the ‘reasonably satisfied’ test does not apply to
landlords (see paragraph 10.2 below);
• tenants cannot deduct capital expenses whereas
landlords may be entitled to capital allowances;
• landlords who are individuals may be subject to the
higher rate of tax; and
__________________________________________________________________________________________
Non-resident Landlords Scheme: Guidance Notes (01/12) 40