NRL tax claim

Dear Sirs, I am an overseas property investor who is receiving rental from properties in the UK. For tax year 2021-2022, the letting agent deducted tax and paid to the HMRC. However, I have personal allowance every year. Considering this, I don't need to pay any tax which means I should not have paid any tax if I did self assessment. For tax year 2022-2023, I applied the NRL scheme and got the UTR number to do the tax return and intend to claim the tax already paid to the HMRC for 2022-2023. I am wondering if I can also claim the tax paid to the HMRC for tax year 2021-2022 via tax return of 2023? Thank you. BR Chris

Hi,
In terms of the 2021/2022 tax year, as you have stated you have use of the personal allowance and the letting agent deducted tax at source through the NRL scheme.
Upon submitting the 2021/2022 tax return, you would declare both rental income receipts and the tax that was deducted, which in tun would then apply your personal allowance and generate a repayment of tax.
As the tax was deducted in the 2021/2022 tax year, you would not be able to claim a repayment for such year in the 2022/2023 year as these are dealt with in isolation based on level of income, expenses and ta deducted.
Thankyou.

Hi HMRC team As far as I know, the NRL are not eligible for Annual Personal Allowance for the tax year which they are not resident of the UK, right? Under what circumstance(s) NRL can still claim the allowance? Thank you

Hi X0unicorn0X,
It depends on your nationality and residence as to whether personal allowances are due - Tax on your UK income if you live abroad
Thank you.

 

Dear Sirs, Thank you for your reply. My situation is that I did not have a UTR no. during the tax year 2021-2022 so that I have not submitted the tax return for tax year 2021-2022. So based on your explanation, my understanding is that if I missed the submission deadline of 2021-2022, then I can't claim the NRL tax withhold through tax return 2022-2023 unless I file a late tax return for 2021-2022? Thank you. Best

Hi,

You are correct. Tax is charged against the income in the tax year in which it arises. You can only claim tax relief (personal allowances) against your property income for 2021-2022 by completing a 2021-2022 tax return.

Thank you.