Does NRL scheme apply to Furnished Holiday Lets (FHLs) ?

by **Jersey boy** on Fri Jul 22, 2011 12:03 pm

We are Channel Islanders and non UK residents and have recently bought a holiday cottage in the UK. Does anyone know if the Non-Resident Landlord scheme applies to income from holiday lets please ?

If it does, would this mean that technically a UK resident renting it for a week would have to pay 20% of the rent to HMRC ???

Our intention is that the cottage should meet the rules for FHLs (i.e. available for letting 140 days + pa and actually let for 70+). Most of the lets would be to persons who are also Channel Islanders or non UK residents.

Thanks very much for any pointers.

by **maths** on Fri Jul 22, 2011 3:14 pm

Does anyone know if the Non-Resident Landlord scheme applies to income from holiday lets please ?

Yes, it applies.

If it does, would this mean that technically a UK resident renting it for a week would have to pay 20% of the rent to HMRC ???

Not only UK residents. Any person paying rent to you as a non-UK resident landlord is under an obligation to withhold income tax at source of 20% of the gross rent and account for it to HMRC (subject to the NRLS).

by **Incredulum** on Thu Jul 28, 2011 5:24 pm

However you should be able to register with HMRC so that you can receive rents gross.

by **section 44** on Thu Jul 28, 2011 5:26 pm

Jersey boy wrote:If it does, would this mean that technically a UK resident renting it for a week would have to pay 20% of the rent to HMRC ???

I could be mistaken but I think that this is subject to a de minimis limit

by **maths** on Thu Jul 28, 2011 5:39 pm

From memory i think section44 is correct and again from memory if the rent per annum is £5,200 or less no need for tenant to deduct ie £100 per week if letting for one week.

Sorry; should have mentioned this.

Limits may have changed ?