UAE Resident - Buy to Let in UK

[etf]

Hi section44,

Thank you for the follow-up.

If Guido does not file a form NRL1 I think we all accept that his tenant should be withholding basic rate tax assuming the rent exceeds £100 per week.

Equally, if Maths accepts my point that a tenant does have the right to claw back tax not withheld from a landlord, Guido may at some stage suffer a cash flow disadvantage.

I accept the point that both you and King-Maker have made, but I also believe if Guido wishes to have the security of receiving 100% of his rent rather than rely on his tenant not complying with his/her UK tax withholding obligation, he is required to complete a form NRL1 i.e. providing tax advice based on someone else not complying with their UK tax withholding obligation is not sound.

As an aside, I started working in the expatriate tax department of a bank in the mid 1980s before the non-resident landlord scheme was in place and remember taking numerous calls from non-resident landlords who were upset their letting agents were withholding a large chunk of their rent each month. It reached such a level that for a small fee we started indemnifying letting agents against their risk so they stopped withholding tax. The letting agents were invariably happy with this arrangement as everyone knows a bank can't go bust

Kind Regards

etf

http://theexpatriatetaxfactory.com

[GuidoT]

Thank you for all your responses.

It is all ever so complicated, who said 'tax does not have to be taxing' when in fact it is.

[etf]

I suspect it wasn't Harry Rednapp!

[section 44]

... or Rosie

[nikkisizer]

Thank you for all your responses.

It is all ever so complicated, who said 'tax does not have to be taxing' when in fact it is.

No it isn't, not really, think of what benefits you have in another great city!

Happy to help if needed, a friendly face from home bla bla bla ;)

[moving2canada]

Hi,

I have UK property which I intend to rent out when moving to Canada this year.

Would I be correct in believing that if I rent to students, who will each be paying less than £100 a week I am exempt from paying tax on the income in the UK?

Thanks,

George

[nikkisizer]

Hello George,

If your net profit from renting your property (rental income less tax deductible expenses) is below the annual personal allowance then the answer is yes.

Even though your tax liability may be zero and you may no longer be resident in the UK you would still need to notify/declare your income to HMRC.

Please do not hesitate to contact me should you require further assistance.

[maths]

What is your authority for the following:

Even though your tax liability may be zero and you may no longer be resident in the UK you would still need to notify/declare your income to HMRC.

[nikkisizer]

What is your authority for the following:

Dear maths,

This has already been answered. Please refer to my previous posts.

[moving2canada]

Thanks Nikki,

I slightly miss-worded the question, what I meant to ask was whether having individual tenants paying under £100 per week rent for my house meant I did not have to register under the Non-resident landlord scheme.

I'm pretty sure the answer is I don't. It means that tenants do not need to pay basic rate tax straight to the IR which seems like a recipe for complications to me.

Thanks,

George