The new job is agreed, the flights are booked, and the house you're leaving behind is the last big decision. Sell and cut ties, let it and keep a foot in the UK, or keep it empty for when you come back? Here's what each option means, including the tax rules for landlords who live abroad.
This guide is general information, not legal or tax advice. Take advice on your own situation.
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Key takeaways
- Selling gives a clean break; keeping the home keeps your options open.
- If you let the home while living abroad, the Non-Resident Landlord Scheme applies.
- You can apply to HMRC to receive rent without tax deducted, but you still file a UK return.
- Ask your lender for consent before letting the home.
- Short lets keep the home free for your visits, and for a sale later.
Contents
Should you sell before you go?
Selling gives you a clean break and money to start again abroad. It also means one less thing to manage from another time zone. But if you might come back, or property prices matter to your long-term plans, keeping the home can make sense.
What happens to tax if you let your home while living abroad?
The Non-Resident Landlord Scheme applies. LITRG explains that you're treated as a non-resident landlord if you have a ‘usual place of abode’ outside the UK. Under the scheme, your letting agent, or your tenant if there's no agent, deducts basic-rate tax from the rent before paying you.
You can apply to be paid without tax deducted. August explains that you apply to HMRC using the NRL1 form. Being paid gross doesn't mean the rent is tax-free. You still report it on a UK tax return.
Do you need your lender's permission to let?
Usually, yes. A residential mortgage assumes you live in the home. London Money quotes one lender bluntly: "A customer will be in breach of their contract where they let out the property without our explicit consent." Ask your lender for consent to let, or switch to a buy-to-let or holiday let mortgage.
Can you leave the home empty?
You can, but it's risky and costly. Confused.com lists spending time abroad among the reasons people need specialist cover, as standard policies usually state a home must not be unoccupied for 30 days or more. Someone will also need to check the home regularly.
Tenancy or short lets while you're away?
- A tenancy gives steady rent, but under the Renters' Rights Act, tenancies roll on with no end date. Getting the home back when you return takes a legal ground and months of notice.
- Short lets keep the home free for your own visits home, and for a sale when you're ready. A manager on the ground handles guests, cleaning and repairs while you're abroad.
Frequently asked questions
Can I rent out my UK home if I move abroad?
Yes, with your lender's consent, and the Non-Resident Landlord Scheme will apply.
Will tax be taken from my rent?
Your agent or tenant deducts basic-rate tax, unless HMRC approves you to receive rent gross.
How do I get my rent paid without tax deducted?
Apply to HMRC using form NRL1.
Can I get my home back if I return?
With a tenancy, you'd need a legal ground and notice. With short lets, you just block out the dates.
Is my home insured while it's empty?
Usually not for long. Standard cover often restricts after about 30 days empty.
Related guides
Sources
This is general information, not legal, financial, tax or insurance advice. Market figures are averages as of the date shown above and change every month. Speak to a qualified professional before you act on anything here.