What is an NRL2i?
Form NRL2i is for companies, functioning in a non-resident landlord capacity, who want to receive their UK rental income without UK tax having first been deducted.
Usually the tenant or letting agent takes off UK tax before paying rent to a landlord living outside the UK.
NRL eligibility criteria
Companies that are landlords of UK rental property can apply if:
- You do not have business premises in the United Kingdom
- The company is incorporated somewhere other than the UK (unless it is ‘resident in the UK for tax purposes’)
Does this mean the rental income is tax exempt?
No. The company must declare the rental income on their self assessment tax return.
How do I apply using form NRL2i?
There are two different ways to apply.
You can apply online using your Government Gateway Account. This is fairly simple to set up, if you haven’t already got one. The online service provides you with a tracking number that you can use to track your application’s progress.
You can also apply by post; you complete the form ‘on screen’, print it and post it to HMRC. You must use this process if you are employing a Tax Agent to submit your application for you. The crucial ‘64-8 Agent Authorisation Form’ must be filled in, signed and included with your NRL2i.
Top Tips before you start your postal application:
- You cannot save a partially completed form and return to finish it later. So it’s easier to gather all your documentation together before you sit down to do it all in one go.
- Check your browser’s compatibility with the form. If it is older, like Internet Explorer 8, you will need to either update it before you start, or use another one.
