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Paying tax


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Scoobie just in case you aren't a British citizen.

There are different laws for foreign and non-resident landlords. Foreign and non-resident UK citizens don't have to pay any tax. A form needs to be filled in and sent. Your letting agent would provide you with the form.

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Fairly straight forward - just give them a call and they will send you the relevent paperwork at the appropiate time !

Although you must keep accurate and upto date records of all financial"activities" associated with the property. Also very wise idea to employ the services of an accountant as you will not be fully aware of all the allowable expenses etc also depending upon upon your personal finances you may want to re-arange things somewhat in order to put youself in the most advantageous financial position ! You wont believe how different you can make it !

I'm sure our resident tax whizz Plym will offer more direct advice shortly.


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Thanks for the details. The LA told us we are not liable for any tax, and gave us a few forms to sign and send to the Internal Revenue. I wonder why?

On what basis do exemptions work?

Also I wanted to ask, what all thing should I keep in mind when giving to foreigners? Do they need to have a residence permit or something? Is it harder to catch hold of them in case they do something illegal?


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Hi all

Apologies for the delay, I have been away.

I thought I would clarify the situation for a new landlord for you Scoobie. I will start from the basics, in case you or another new landlord need this. Just for your information, I am a Chartered Tax Adviser specialising in property taxation.

You are required to inform H M Revenue and Customs that you require a tax return by 6 October following the tax year in which you first let your property. So if you first let it say 15 March 2007, then report to HMRC by 6 October 2007. However if you first let on 15 April 2007, the you would need to inform HMRC by 6 October 2008.

Your tax return will cover all income that you have earned in the tax year, so not just your rental profits, but your other income, so for example, salary, bank interest etc. A tax year runs from 6th April to 5th April next.

A tax return must be submitted for each owner of the rental property, so if you own the property with your partner then you will both need to prepare tax returns. The deadline for submitting your tax return is 31 January following the end of the tax year, so a tax return for the tax year ended 5 April 2007 must be submitted by 31 January 2008 to avoid incurring a filing penalty.

Your tax liability will also have to be paid by 31 January 2008 in order to avoid incurring interest, and non payment by 28 February would incur a 5% surcharge on the outstanding tax at that date.

As far as expenses, please feel free to email me on sherena.glanton@horwath.co.uk and I would be happy to email you my residential lettings fact sheet, which will hopefully be of use.

Additionally, if you visit the selected suppliers section of this website and click on accountants, I have a video podcast there (under Horwath Clark Whitehill) which is a short information clip about a few common questions which may be of help to you as a new landlord.

If you do require the assistance of an accountant, please do feel free to contact me for a competative quote.

On the other topic of non UK resident landlords I just thought I would clarify that any landlord whether a UK citizen or resident or not, who owns and lets a rental property in the UK is subject to UK taxes. They may however find that there is a Double Taxation Treaty with their own country which means that one or other country would get credit for the tax paid in the other country in order that the taxpayer isnt just to paying tax twice on the profits.

I hope the above helps.

Kind regards


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Hi Sherena,

Thanks for clarifying the non-UK resident part, and the double taxation part. Does anybody have views on the present property market in London? Is this a good time to buy a 'buy-to let' property? (Also sorry if I am discussing things which might be off the topic. I'm new here, so am not very sure how things work. But I must repeat, you guys have been of great help.)


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