Non-resident landlord

[Heaton]

I'm moving abroad but want to continue renting properties for the time being. I have 20. I'm not using a letting agent as my properties are stable, but I've got someone to do work as required. I have a mix of HB and private tenants and all my rents are paid directly into my UK bank account which I intend to continue with. I've been reading the HMRC guidance about non-resident LL's and it talks about LL's with letting agents (not me)and those 'tenants' paying less than £100 per week. None of mine pay over £100 per week, but there are 20 of them. Is the guidance only refering to the LL with 1 tenant or not? Is there any way I can carry on receiving rents as I currently do?
many thanks

[kirstie.williamson@a]

The gerneal rule is that if you are a non-resident landlord then your letting agent ( and if no agent then your tenants) must deduct basic rate tax ( 22%) at source from the gross rents before paying it over to you. You then file your annual UK tax returns as normal and any tax already paid over is credited against your liability.
However, in order to continue receiving your rents gross all you have to do is complete a form NRL1 and send it to HMRC. The form and guidance notes is available on the HMRC website. Basically the form just asks for confirmation that all your tax affairs are up to date - ie all tax returns filed and tax payments made that are due.
HMRC will write to you to confirm that your rents may be paid gross.
Don't forget that when you leave the UK you will also need to complete a form P85 - again available from HMRC website.
The country which you are moving to may also tax your rental income - you should check with a local advisor on arrival.

Hope this helps

KW

[Taxbar]

Realistically you need holistic advice on going Non-Resident as following the Gaines-Cooper case this requires good planning.

You cannot continue to be seen as managing a UK property portfolio and will need to appoint an Agent.

Invest in some good advice!

Strategic Tax Planning
info@stratax.co.uk