Generally, you are only assessed to tax on income received in the UK.
Income from a property in the UK is usually taxed in the UK wherever you reside.
However, depending on your nationality and country of residence you may be entitled to the UK personal tax allowance which was £11,850 for 2018/19, £11,500 for 2017/18 and £11,000 for 2016/17. If you are a British national you are automatically entitled to the UK personal tax allowance, which means no tax would be payable in the UK on rental profits of less than £11,850 (provided that you have no other UK income).
If you are not a British national there are double taxation treaties with EU and some other countries which also entitle you to claim the UK personal tax allowance. Please get in touch and we will be happy to confirm whether you are entitled to the UK tax allowance.
Tenants or letting agents have a responsibility to deduct basic rate tax from any rent paid to non-resident landlords. If you wish to continue receiving UK rental income gross whilst you are non-resident, you should submit Form NRL1 to the HMRC Centre for Non-Residents.
HMRC should then grant approval for rents to be paid to you gross and notify the tenant or agent as appropriate. Your rental profits will still remain taxable in the UK but this will help with cash-flow.
If any of the following apply then you may be required to complete a tax return :-
Non resident tax rules can be quite complex. If you are in any doubt then get in touch. We can help and are happy to answer questions. We offer a free initial consultation so that you can discuss your situation and find out whether you should complete a tax return or not.
Call us or get in touch with us through our website. We discuss your needs and give you an accurate assessment right away. It’s absolutely free and you’re under no obligation.
We then gather the information we need which you can send us by email, fax or post.
We complete your tax return and send you a full copy together with a detailed breakdown of your tax computation for your approval. We then file your return electronically.
Call us, email us or ask us to contact you