Landlords and tax

PAYING INCOME TAX

When you start renting out property, you need to inform HMRC (Her Majesty's Revenue and Customs) as you may have to pay Income Tax.

As a landlord, you will be treated as running a business if you are letting out one or more properties.  HMRC have a range of resources to help you get started and keep you right on everything from expenses you can claim, capital gains tax to paying tax on an overseas property.

You can also contact HMRC using the HMRC online contact form or you can phone them on 0300 200 3300.

OVERSEAS LANDLORDS

You will be considered an overseas landlord for tax purposes if you are out of the country for more than six months in any tax year.    You are obligated to pay tax and declare your income whether or not you are resident in this country.

Overseas landlords need to apply to the Centre for Non-Residents (CNR) for consent to allow us to pass on gross rent income (without deductions)   Form NRL1.    Otherwise we are required to deduct 20% and submit and quarterly return to HMRC.  Joint owners must both apply - tax is related to the individual not the property.