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TAX
Income Tax is payable on UK lettings irrespective
of where the landlord resides. However through careful planning
and assistance you should be able to avoid paying some, or even
all, of this tax. Non-declaration of letting income receives increasingly
harsh treatment from the Inland Revenue. We therefore advise that
you employ an accountant to minimise or eliminate your tax. Provision
for setting expenses against your income include, but are not limited
to, the following;
• Mortgage / Loan for the purchase of the property
• Ground rent on leasehold properties
• Buildings Insurance
• Contents Insurance
• Repairs
• Annual Safety Checks
• Legal Costs
• Accountancy Costs
• Letting Agents Fees
• Wear and Tear of contents
NON-RESIDENT
LANDLORDS
Most property income of non-residents is subject to UK tax. The
Finance Act 1995 allows overseas landlords to apply to self-assess
and on approval First Choice are issued with an "exemption
certificate" (NRL8) which authorises us to pay rent without
the deduction of tax. However where no "exemption certificate"
is available we have a statutory obligation to implement a tax deduction
before remitting the rents. First Choice will supply the application
form and provided the applicant's tax affairs are in order the Inland
Revenue may issue a certificate. It is important that we are advised
if your tax affairs, in respect of the letting of the property,
are handled by you, your accountant or First Choice.
Further Information is available from;
Financial Intermediaries and Claims Office (Non residents), St.
John's House, Merton Road, Bootle, Merseyside L69 9BB, England or
by telephone on +44 (0)151 472 6208 /
+44 (0)151 472 6209 or facsimile +44 (0)151 472 6067.
MIRAS
Contrary to popular belief it may be beneficial for you as a landlord
to withdraw the let property from the MIRAS scheme. A taxpayer who
withdraws from MIRAS usually continues to obtain tax relief, albeit
not at source. Your accountant, should you instruct one, will be
able to advise you whether withdrawal is advantageous to you.
Please Note: The above information is written as a general outline
and is subject to changes in legislation.
If you would like any further information
on this or anything else please contact
us
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