Stephen J.
Dann
~ ITPA ~
UK Tax Advisor
Overseas Landlords with UK Property
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If you own property in the Uk and receive rental income then you will be subject to UK tax on that income, less any expenses incurred wholly for the purpose of letting the property.
It is important to note here that British expats are subject to UK taxation on investment income from the UK, even though they may be living abroad and no longer UK resident, and rent is considered investment income. The Personal Allowance is available in such circumstances, however, and therefore many ex-pats do not pay tax on their rental income from the Uk.
HOW DOES THE SCHEME WORK?
Unless a landlord is
registered with the Inland Revenue the property agent
will deduct basic rate income tax from net rental income
and remit this to the Inland Revenue. If there is no
agent the Inland Revenue will collect the basic rate tax
from the tenant. At the end of the Income Tax year an
income tax return form must be filed in order to reclaim
any tax overpaid. This procedure may be avoided however
by registering with the Inland Revenue under the
Non-resident Landlords scheme. Whilst your tax
affairs are up-to-date, you will then be permitted to
receive the rental income gross. You may have to complete
an annual Self Assessment Tax Return form, however, and
failure to complete any such form issued to you will
result in withdrawal from the scheme. You also have a
Statutory obligation to file a Return if your letting
income reaches the level where it becomes taxable even if
no Return form is issued to you.
I also advise on the tax position of UK property
where a non-resident landlord is considering selling or returning
to the UK. Every individual has a different set of
circumstances and I therefore only advise after obtaining
all relevant information.
I have over thirty six years experience of UK taxation.
In recent years I have built up a portfolio of overseas
landlord clients for whom I prepare Return forms,
and if there is little else involved then my fee is £ 165
for preparing and submitting the annual tax Return form,
or £ 195 for both Returns where two people are letting
a property jointly, or where the landlord is not covered by
the Non-resident Landlords scheme. My company also prepares annual
Returns for a UK property letting agency on an outsourcing basis.
a. Copies of my professional certificates may be found HERE
Being away from the country you will not be aware of
changes in tax regulations which affect
this aspect of your life. For this reason you may find it
difficult to complete the Return form, and especially the
Residency schedule.
The following Douglas and Gordon non-resident landlord scheme summary provides a view of the scheme from an Estate Agent's viewpoint.
CAPITAL GAINS TAX ON PROPERTY
In the first instance please email me from this page,
informing me of the date on which you left the UK, your
proposed return date, and when the property in question
was acquired. I will respond promptly.
MY ONLINE SERVICE
Forms may be prepared by exchanging information either
via e-mail or conventional Air Mail.
MY INTERNET CREDENTIALS
My Linkedin network including testimonials may be viewed here:
b. Any income tax refund is made
direct to you. I do not expect you to entrust someone you
have only encountered online with your
money.
c. I have over seven years' experience of providing tax
advice via the internet.
d. WorldPay have provided my credit card processing since
August 2004 when Paysystems Inc. withdrew from the
international market. I have only been involved in one credit card
reverse charge which I did not dispute since a failure by my internet hosting service prevented the client receiving my advice.
. A link to WorldPay's website is provided via their logo on my Payment page and
you are welcome to contact them.
If you wish to engage my services or obtain further
information then please e-mail me from this page.
