Property investors are considered Non-Resident Landlords if they spend more than six months in any tax year outside the UK.

The Statutory Residence Test or other tax definitions of residence don’t apply to Non-Resident Landlords.

Instead, HM Revenue & Customs (HMRC) looks at their ‘usual place of abode’. This is where a landlord may stay for more than six months, but doesn’t have to be a main or permanent home.

Under the scheme, a landlord can have UK tax residence, but their ‘usual place of abode’ in another country.

Other Non-Resident Landlords include:

  • Companies renting out property in the UK with a registered office or main place of business outside the UK

  • Members of the armed forces or Crown servants, such as diplomats, posted overseas

If a property is rented out by joint owners and one is a Non-Resident Landlord, the profits are split according to the share of ownership of each. But only the share of the Non-Resident Landlord comes under the scheme.

Having a PO Box or ‘care of’ address in the UK is not enough for a landlord to claim a usual place of abode in the UK.