If you are letting out a residential or commercial property in the UK, and live abroad for six months or more each year, HM Revenue & Customs (HMRC) regards you as a non-resident landlord, even if you are UK resident for tax purposes.
If you are a non-resident landlord, you can choose to receive your rent:
1/ In full and pay tax due through self assessment – HMRC will not approve your application to receive rent in full unless you are up to date with all your UK tax obligations or you do not expect to have any UK tax liability in the year in which the application is made - You will need to complete the NRL1i form on the HMRC website
2/ With a basic tax already deducted by your letting agent or tenant (after allowing for any expenses they have paid), who will give you a certificate at the end of the tax year saying how much tax they have deducted. If you do not have a letting agent and your tenant pays you more than £100 a week in rent, they should deduct the tax from their rent payments to you and pay the tax over to HMRC.
We are letting agents and not tax professionals so we would always advise speaking to a tax professional about your situation before letting your property out.
We currently have landlords living all over the world, from Spain to Australia which means we have the experience and are set up correctly with HMRC to deal with overseas / non-resident landlords. With our overseas / non -resident landlords the most popular service would be the full management as they are often unable to visit the property and be on hand due to time zone difference.
Our main difference to other letting agents is that we will not only keep you posted via email but we will also call you regarding anything that needs to be discussed. The overseas landlords that have come to us have really appreciated our personal approach as in the past other letting agents will simply email and never call. Throughout the tenancy that we are managing you will be sent quarterly reports with pictures so that you have peace of mind that your property is in safe hands and being looked after in an appropriate way.
From the start we will work with you to establish your plans for the property, if that is either just a short term rental of a year whilst you go off and live abroad or if it is going to be more long term with a permanent re-location on the cards. We understand life can be full of surprises and feel that as a smaller agent we are able to adapt quickly too any situation you may be in.