Non Resident Tax on UK Rental Property

[Expat1]

Hi, Im originally from the UK but have worked overseas for a number of years (except one ) covid year looking after elderly family). If i work overseas is my uk property income allowed the 12k allowance before tax comes into affect?

Thanks

[darthblingbling]

As long as you are a UK or EEA National (and a few other things allowed under UK legislation).

If not, may be possible under a tax treaty depending where you are tax resident.

Just make sure you claim it on the residency pages of the tax return as it's not automatic if you're non resident.

Don't forget it may also be taxable in your country of residence.

[Expat1]

Thank you darthblingbling!

[Expat1]

Hi Darthblingbling

Question. If i work overseas but im in the UK just under half the year. I’ll be tax equalized in the UK so will have to pay any additional tax up to my tax amount in the UK. If this is the higher tax rate. Will my rental property income be taxed also at that higher rate?

Appreciate your help!

[darthblingbling]

Tax equalisation agreements are usually done in the best interests of the employer given that they are meeting your tax liability in the host country on a grossed up basis and potentially significant cost, you should speak to them to confirm the position for your personal income for when they do the reconciliation.

[Expat1]

Thank you!