Individuals are required to declare and pay tax on any income they receive from renting out property in the UK. This is usually done through a UK agent, more often than not an estate agent, or by registering as a non-resident landlord.
Most UK estate agents who collect rent will simply deduct UK withholding tax at 20 percent on the gross rent and pay this over to HMRC. This means that relief for other allowable expenses (such as interest on loans used to buy properties) may have to be reclaimed at a later date, which can, in turn, lead to cash flow problems.
MGI Midgley Snelling LLP assists many clients who own and rent out property in the UK. We can usually register you under the Non-resident Landlord Scheme, which means rents can be received gross and tax only paid on the net taxable rent.
We can help you by:
- Advising on suitable ownership structures for UK property
- Registering you as a non-resident landlord
- Advising on what expenses are allowable
- Calculating your actual tax liability, and preparing and submitting your annual tax returns
- Acting as your UK agent
- Collecting rent and arranging payment of tax liabilities – providing a complete accounting and management service
To find out more about our services for non-resident landlords, please contact us.