If you live overseas and own properties in the UK then you are required to file annual tax returns to HMRC, regardless of your level of rental income. We understand that dealing with HMRC can feel complex and overwhelming. At UK Tax Returns we specialise in assisting Non-Residents and can guide you through the process, including registration into the Non-Resident Landlord Scheme. In many cases our overseas landlords might not actually owe any tax in the UK, however it is always important that you declare the correct figures to HMRC within their set timescales to avoid penalty.
Sometimes life takes over, and if you have fallen behind with your tax returns for whatever reason, there is an amnesty campaign run by HMRC specifically for Landlords. Under the Let Property Campaign, we can assist you with submitting a disclosure to HMRC to address the historic tax years involved, and to settle any overdue tax which may be owed.
LET PROPERTY CAMPAIGN
FURNISHED HOLIDAY LETS
Furnished Holiday Lets (or FHL’s) have grown in popularity in recent year with the rise of various booking websites such as Air B&B. An FHL is effectively a residential property which is supplied fully furnished and is available for short term letting periods, such as self-catering holidays or work accommodation away from home.
Non-Residents have received some favourable tax breaks in recent years with the most significant being the treatment of Capital Gains Tax when disposing of UK based assets. While most types of disposals made by Non-Residents remain exempt from CGT; this has changed significantly in respect of residential and commercial property.
PROPERTY CAPITAL GAINS TAX
The UK is in a unique position whereby it has more Double-Taxation agreements in place that any other country worldwide – 149 at the last count. A DT agreement between two countries effectively sets out the tax treatment for different sources of income and stipulates in which country the income is taxed, or if this income is to be assessed twice.
Even after you have left the UK and moved your life aboard, certain types of income which continue to be arising in the UK will continue to be assessed for tax here even after you have left. The most common type of UK arising income is Rental income, which will always be assessed for UK tax as the asset is physically based here.