UK non-resident landlord tax return services for Thai investors

If you own a rental property in London and reside in London, UK tax is not something you can put to one side.

HMRC requires you to report and pay tax on the rental income made from the UK property, regardless of where you are based. The rules are clear, deadlines fixed and penalties for missing them are automatic.

Benham & Reeves Thailand handles this for Thai investors and Thai landlords every year, which includes filing returns, managing HMRC correspondence and making sure no important update gets missed while you stay in Bangkok.

What is the Non-Resident Landlord Scheme (NRLS)?

NRLS is HMRC's mechanism for collecting tax on UK rental income from overseas landlords, including those based in Thailand.

Under this scheme, if you do not register, your letting agent or tenant is required to deduct 20% tax from your rent before paying you.

That deduction goes directly to HMRC. You receive the balance amount.

However, there is an alternative to this: you register with HMRC using the NRL1 form and apply to receive your rent in full gross, with no deduction at source.

This does not mean you pay less tax overall. It means you collect the full rent and settle your liability through a Self Assessment tax return at the end of the UK tax year.

Most landlords who are properly set up opt for the gross route.

This option is cleaner, gives better visibility over cash flow and keeps your tax position consolidated in one annual filing rather than quarterly deductions.

From April 2026, Making Tax Digital requirements have also been extended to non-resident landlords in certain income brackets. If your gross annual rental income is above the relevant threshold, additional reporting obligations may apply.

Our team stays up to date with these requirements, so you do not have to.

Get help with your UK tax return today

How our tax return service helps

Benham & Reeves’ service covers:

Registering you under the Non-Resident Landlord Scheme if you have not already done so.

Preparing and filing your UK Self Assessment tax return annually. This includes the SA105 (property income) and SA109 (residence and domicile) supplementary pages.

Calculating your allowable deductions, including letting agent fees, maintenance, insurance, service charges and more. We ensure you are not overpaying.

Liaising with HMRC directly if questions arise, so you are not dealing with HMRC correspondence from overseas.

Keeping you informed of filing deadlines; missing online Self Assessment deadlines triggers automatic penalties regardless of whether tax is owed.

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Key tax areas we cover

We keep the process straightforward.

Here is what matters for most Thai investors with London rental property:

Rental income tax

All income from your UK property is subject to UK income tax. The basic rate is 20%, rising to 40% above the higher-rate threshold.

Tax-free personal allowances may apply in certain cases, depending on the terms of the UK-Thailand Double Taxation Agreement and your individual circumstances.

Allowable deductions

Revenue expenses can be offset against your rental income before tax is calculated.

This includes letting agent fees, property management costs, repairs and maintenance, buildings insurance, service charges and ground rent.

Capital Gains Tax (CGT)

If you sell your UK property, CGT reporting and payment obligations apply to overseas landlords.

The rules changed significantly from April 2020 and require separate reporting to HMRC within 60 days of completion.

The UK-Thailand Double Tax Agreement

The UK and Thailand have a double taxation treaty in place.

Under this treaty, UK income tax paid on your London rental income can be credited against any Thai tax liability on the same income. This way, you are not taxed twice.

Why local investors choose Benham & Reeves Thailand

We are a London property estate agency with a dedicated Thailand office.

We help manage the letting of properties on behalf of many of our Thailand-based clients. Our tax team has direct access to the rental income figures, tenancy agreements and expenses records needed to file accurately.

There is no chasing documents across three different parties.

Our team has worked with several overseas landlords for decades.

Our experience allows us to better understand the specific pressures of managing a UK property from abroad; managing time zone gap, the difficulty of responding to HMRC letters promptly and the importance of having someone who can act on your behalf without constant back-and-forth.

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Frequently asked questions

If your usual place of residency is outside the UK and you receive rental income from UK property, the NRLS applies to you.

However, if you do not register, your letting agent or tenant can withhold 20% tax from your rent and pay it to HMRC.

Timely registration allows you to receive your full rent gross and manage your tax through the annual Self Assessment process.

The NRL1 (or NRL1i for individuals) is the application form you submit to HMRC to receive your rental income without tax deducted at source.

If you want to collect your full rent and handle your tax position through a Self Assessment return, you need to submit this form. We can handle the application on your behalf.

Not on the same income. The UK-Thailand Double Taxation Agreement means that tax paid to HMRC on your London rental income can be credited against any Thai tax liability on the same income.

Automatic penalties apply from the first day after the deadline, regardless of whether you actually owe any tax. An initial £100 penalty is issued immediately.

Yes. Benham & Reeves Thailand acts as your representative with HMRC, prepares and files your return and manages any correspondence on your behalf.

You do not need to be in the UK or have any direct contact with HMRC. We keep you informed at each stage.

Revenue expenses that are incurred wholly and exclusively for the purpose of letting your property can be deducted. This typically includes letting agent fees and property management charges, repairs and maintenance (not improvements), buildings and contents insurance, service charges and ground rent, professional fees such as accountancy costs and, in some cases, mortgage interest.