If you live outside the UK and let out a UK property, you are still taxed in the UK on that rent. The rules are different from those for UK-resident landlords, and the paperwork often lands on a letting agent or tenant who is unsure what to do.
The Non-Resident Landlord Scheme
If you live abroad for more than six months of the year, HMRC treats you as a non-resident landlord. Unless HMRC has approved you to receive rent gross, your letting agent must deduct basic rate tax (20%) from your rent, after allowable expenses, before paying you. If you have no agent, your tenant must do the same if the rent is more than £100 a week.
If your UK tax affairs are up to date, or you don't expect to owe UK tax, you can apply to HMRC to receive your rent with no tax deducted. You then report the rent on your self assessment tax return and pay any tax due there. This stops 20% being taken from every rent payment, and avoids waiting for a refund when the tax deducted is more than you owe, for example if you are entitled to a UK personal allowance.
What I do for overseas landlords
- Apply to HMRC so your rent can be paid to you without tax deducted
- Prepare and file your UK self assessment tax return
- Making Tax Digital quarterly updates, which also apply to non-residents with UK property income above the threshold
- Claim the expenses and finance costs you are entitled to
- Work with your letting agent so the right figures reach HMRC
- Corporation tax returns if you own UK property through a company
Selling a UK property while living abroad
Non-residents must report the sale of any UK property to HMRC within 60 days of completion. This applies even if there is no tax to pay, and late returns attract penalties. I work out any capital gains tax, file the return and make sure any tax already paid is credited on your tax return.
How I work with landlords abroad
Everything is done online. You share your records digitally, most questions are handled by email, and calls are booked online during UK hours. You pay a fixed monthly fee agreed up front.
Talk it through
Book a discovery call. We'll look at your properties and what you need, and you'll get a proposal with a fixed monthly fee before you commit to anything.
Book a discovery call