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 rent, less any expenses incurred wholly for the purpose of letting the property.
It is important to note here that all landlords living abroad 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 to British and European Economic Area citizens in such circumstances, however, and therefore many non-resident landlords do not pay tax on rent received from the Uk. The allowance is no longer available to British Commonwealth citizens except in some limited circumstances.


Unless a landlord is registered with HM Revenue and Customs (HMRC) the property agent is obliged to deduct basic rate income tax from net rental income and remit this tax to HMRC. If there is no agent the Inland Revenue have powers to collect basic rate tax from the tenant. At the end of the income tax year a self assessment tax return form must be completed by the landlord in order to reclaim any tax overpaid. This procedure may be avoided however by registering with HMRC under the Non-resident Landlords scheme. Whilst a non-resident landlord's tax affairs are up-to-date they are permitted to receive the rental income gross. It is not sufficient to just complete the HMRC P85 form, however, and the specific form is the NRL 1 - PDF Landlords are still required to complete an annual Self Assessment Tax Return form, however, and failure to complete any such form issued may result in withdrawal from the scheme. Non-resident landlords also have a statutory obligation to file a Return if the letting income reaches the level where it becomes taxable even if no Return form is issued.
Living abroad, Landlords may not be aware of relevant changes in UK tax regulations and many experience difficult completing the Return form, and especially the Residency section. The Statutory Residence Test applicable from 6th April, 2013 now provides clear rules in order to determine whether an individual is UK resident or not. You may view Details of the Statutory Residence Test via this link STATUTORY RESIDENCE TEST - PDF


I have fifty years experience of UK taxation and have built up a portfolio of non-resident landlord clients for whom I prepare self assessment tax Returns, and if there is little else involved then my fee is £ 375 for preparing and submitting the annual tax Return form, or £ 590 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.


I also advise on the tax position of UK property where a non-resident landlord is considering selling a property and/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.


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a. Copies of my professional certificates may be found HERE
b. Any 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 twenty years' experience of providing tax advice via the internet.
If you wish to engage my services or obtain further information then please e-mail me from this page.

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