When you own a property in the United Kingdom but live abroad, it can be complicated to know what the tax differences are when just being a simple resident landlord and what to do to make the right steps and still stay compliant.
What makes being a non-resident different ?
When you own a property in the UK but live abroad, then the tax regulations will be different for you to be compliant and pay your taxes on the properties you own in the UK. The NRLS (Non-Resident Landlord Scheme) is a scheme that helps to tax your UK rental income while living abroad. However, if you are not registered with this scheme and you rent out your property through an agency then the tax will be deducted directly before you declare your income.
You need to be aware and look at the double taxation agreement between the UK and the country you live in. You will always have to pay tax in the UK, but you need to see how it works in the agreement with your country of residence. Also, non-resident landlords will usually be required to file a Self Assessment tax return, even if you don’t have any tax to pay. Earning rental income from the UK means you have to follow the normal UK tax year from which is from the 6th of April to the 5th of April of the next year.
You may be entitled to a UK Tax Free Personal allowance of £12 570 which is the amount of income that you will not have to pay tax on. In terms of Real Time Capital Gains, when you are a non-resident, you will have to report the sale of any property, with or without tax being due on the sale.
We can help you register for the Non-Resident Landlord Scheme as well as helping you with your Self Assessment, so get in touch straight away!
Here To Make Life Easier 