Gross rent can only be paid to the landlord after written confirmation is received from HMRC by the tenant.
Process:
Landlord will contact HMRC (Non-resident telephone helpline) and give details of tenant. Then HMRC will write a letter to the tenant authorising them to pay gross rent without deduction. Till then rent can only be paid after deduction of tax at basic rate (currently 20%).
Sample letter below:
Roy Accountants 