Stephen J. Dann
~ ATT ~
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.
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

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.
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

I have over thirty 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 £ 135 for preparing and submitting the annual tax Return form, or £ 165 for both Returns where two people are letting a property jointly, or where the landlord is not covered by the Non-resident Landlords scheme.

Forms may be prepared by exchanging information either via e-mail or conventional Air Mail.


MY INTERNET CREDENTIALS


a. My qualifications are verifyable, and I am subject to the rules of a professional body, copies of my professional certificates may be found 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 six 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 never been involved in a credit card dispute or reverse charge. 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.

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