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It just gets worse!!


Fiona123

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All the red tape, blablabla, does snyone know about the Government Scheme for UK landlords who live out of the UK? We are proposing to move to France, but I do not want my tax deducted at source from my rents, or if I apply to be exempt from this and I am declined then I am :( Then the tax I am owed will not be repaid until the French Authorities give the all clear I have paid there so could be years!! there.........what a nightmare.........any legal ways round this? I do not let via a letting company and have my own property manager.

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Now as a agent if a landlord was living abroad for 6 month pa or more (i think) i would have to tell them to apply to get a ref no from the ILR which then only applies to me and if they wanted to change agents they have to reapply. If I didnt and paid rental income in full (less fees) the ILR could come back to me for up to 7 years for tax that should have been deducted.

Now I know some landlords who live abroad who give a uk bank a/c for rent to be paid into have a uk address for invoices to be sent to and most importantly a uk landline number. As far as the agent knows it could be a friends or relatives but he has at least covered himselve as much as poss.

I believe it is all part of the finace act 1995

If you dont use a agent and the tenant pays you direct into a/c you get the odd situation where the tenant is reponsable for deducting the tax (if there is no ref no apllied for by L/L) and is liable if not deducted.

I think the tax rate at present is 22% going down shortly to 20%

I am recalling this from a ARLA legal course i took about a year ago so I hope i have remembered correctly.

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Why dont you just complete a form NRL1 from the inland revenue? you can download it http://www.hmrc.gov.uk/nonresidents/fagnrl1_bw.shtml

providing your taxes are up to date they will normally allow you to have your rental income without tax deducted at source.

Without this tax will have to be deducted from your rental income - and without an agent - this would be retained by the tenant to pay over on your behalf - and I dont know many landlords who would be happy with that!

Also remember that when you leave the UK you will also have to make a declaration (form P85) http://www.hmrc.gov.uk/cnr/p85_p85s.htm

Hope this helps

Regards

Sherena Glanton CTA

sherena.glanton@target-accountants.com

01225 486 359

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