- To prevent non-resident landlords avoiding their UK tax obligations arising from profit on a property rental business; a "withholding tax" called Non-Resident Landlord scheme exists.
- Letting agents or tenants are obliged to deduct from net rents an amount of tax and send it quarterly to HMRC.
Paying more than you should?
- The tax is calculated normally on the gross rent less the agent's fees and allowable expenses e.g. maintenance.
- The rate of tax deducted is the basic rate and will be credited to the landlord's account when a UK Tax Return is filed.
- However, the tax deducted may be be more than the liability determined when your UK Tax Return is prepared.
Are you missing out on reliefs and allowances you are entitled?
- The tax payable is generally less than the amount deducted by the letting agent.
- Application can be made to HMRC for rent to be paid to the landlord without deduction of tax.
- We can help the landlord file UK Tax Return and claim allowable expenses, applicable reliefs and allowances.
Get in touch so we can help with your non-resident landlord tax obligations
Please contact us for any enquiry:
Wentworth House, 81-83 High Street North,
Dunstable LU6 1JJ