A non-resident individual is liable to UK income tax on rental profits arising from a property in the UK. One should registration under the Non-Resident Landlords Scheme.
HMRC then requires the letting agent to deduct basic rate tax, which is currently 20%, on the amount of rent received less any allowable expenses paid by the letting agent or tenant. If there is no letting agent and the tenant pays £100 or more per week for rent , the tenant has to deduct the tax as directed. Any expenses deductible from the rent have to be revenue in nature and wholly and exclusively incurred for the rental business, for example advertising costs of attracting new tenants, ground rent, insurance on buildings and contents and provision of services .
Non-resident landlord should ensure that their tax affairs are up-to-date and tax returns are not late to retain gross payment status.
UK rental income is not part of any double tax treaty arrangement. Tax is due in the jurisdiction where the land is situated.
When selling the UK residential property HMRC has to be notified within 30 days. Following the March 2015 rebasing capital gains tax will be due on any gain.
109B High Street
Herts HP1 3AH
Tel: 01442 242491
The Brentano Suite
915 High Road
London N12 8QJ
Tel: 0208 343 6091
If you have an enquiry or wish to make an appointment please contact us:
London : 0208 343 6091
Hemel : 01442 24 24 91