An investment in buy-to-let property has much to offer: a consistent source of income and the potential for capital gain as property values increase. With rising demand for rental properties and increasing market rent, there has been no better time to invest.

We act for a large number of non-resident landlords, providing complete tax and accountancy solutions to put your mind at ease.

 

What is a non-resident landlord?

A non-resident landlord is a person that owns and rents out property in the UK but has their ‘normal place of abode’ abroad.  HMRC regard an absence from the UK of six months or more as non-residence.

 

How does the Non-Resident Landlord Scheme work?

If property is located in the UK then any income generated from it is charged to tax in the UK.  Basic rate Income Tax must be deducted from rents by the letting agent or tenant.  The non-resident landlord can apply to the scheme if their affairs are up to date, they have never had any UK tax obligations of they do not expect to be liable to UK income tax.  We can help you register to the scheme and prepare you tax returns so that you receive gross rents.

 

Who is eligible for personal allowance?

You’ll get a Personal Allowance of tax-free UK income each year if any of the following apply:

• you hold a British passport
• you’re a citizen of a European Economic Area(EEA) country
• you’ve worked for the UK government at any time during that tax year

You might also get it if it’s included in the double-taxation agreement between the UK and the country you live in.

 

What allowable expenses can be deducted from rental income?

• Maintenance and Repairs
• Utilities
• Insurance
• Management fees
• Accountancy Fees
• Ground Rent
• Service charge