Property Letting in the UK or Overseas
Residential or ‘Buy to Let’
Property Letting for UK and Non-UK residents
You can relax if we do your tax !
If you are letting residential property or land in the UK, then you have normally a requirement to register for self-assessment (if not already registered) with H.M. Revenue and Customs. You would then need to report the property letting activity, on an annual Tax Return in the UK. You should report the income from rents received, less any relevant expenses. The expenses could include letting agents fees, repairs and maintenance, insurance, service charges, council tax, water etc.
The form that needs to be completed, if you have not already registered for self-assessment with H.M. Revenue and Customs, can be found on the following link Form SA1
Once you have registered with H.M. Revenue and Customs (HMRC) for self-assessment, HMRC would then request that you complete and file a Tax Return. You would be required to report the property letting activity in each year to 5th April.
When you start a new letting activity for the first time, in the year to 5th April, you are required to notify HMRC, by the following 31st October.
You would need to complete and submit the annual Tax Return to HMRC, if filed online, by 31st January. This would cover the tax year ending on the previous 5th April. You would be required to pay any tax due also by 31st January.
For Non-UK Residents
If you are Non-UK resident with UK property or land, let via a letting agent, then unless application has been made to HMRC, under the Non Resident Landlord Scheme, the letting agent is required to deduct tax at source as a result. This would be at the rate of 20% of the rents received via the letting agent. However, you would normally be able to reclaim any overpayment of income tax, as a result of the tax deducted at source. You would make this claim when you complete the annual UK Tax Return, which you then submit to HMRC.
If you are Non-UK resident and if you are letting UK property via a letting agent, then it is more beneficial for you to apply under the Non-UK Resident Landlord Scheme. You can make the application to H.M. Revenue and Customs on the following link Non-Resident Landlord Scheme. You can then receive the rents paid gross by the letting agent, with no tax deducted.
Property and Land Disposals
Did you know that from 6th April, 2020, you are required to use a new system in the UK, when you report the sale of property or land to HMRC ?
If you dispose of UK residential property or land, which results in a gain (normally excluding your main home), then HMRC require you to notify them of the disposal within 30 days. You are also required to pay any capital gains tax arising to HMRC, within the 30 day period.
In addition, if you are a Non-UK resident and you dispose of residential or non-residential property or land, you would also need to report to HMRC, within 30 days of the date of disposal. This applies even if you have no capital gains tax to pay, or you have suffered a loss on disposal.
Our service also covers overseas property letting and property disposals.
We help with all aspects of property letting and property disposal taxation.
We provide a fully comprehensive Tax Return service and we act as your tax agent in the UK, in dealing with all of the above.
Tax advice is included for you with our free tax support helpline.
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