If you are non-UK resident and you receive rental income in the UK, you must register with HMRC under the Non-resident landlord scheme (NRLS) regardless of whether you are an individual, trust or company. Otherwise, your tenant or letting agent is responsible for withholding 20% tax from your rental payments and paying this over to HMRC.
As an individual, you may be entitled to a refund of the tax withheld if you are a citizen of the European Economic Area (“EEA”). As an EEA citizen, you are entitled to a personal allowance (currently £11,500) with any income within the personal allowance being tax-free. If you are registered for self-assessment you can claim your repayment on your tax return. Otherwise, you have four years to make a repayment claim.
Alternatively, if you register with HMRC under the non-resident landlord scheme, you can request to receive your rental income without a deduction of tax. HMRC will write to your letting agent or tenant to inform them that they no longer need to withhold tax on your payments, which may help with cash flow.
If registered, you will still need to complete a tax return in order to disclose the rental income you have received and calculate any tax liability arising. You can find further information at https://www.gov.uk/tax-uk-income-live-abroad/rent
If you think the Non-resident landlord scheme may affect you, please get in touch.