Non-Resident with UK rental income

Non-Resident with UK rental income

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I have a client who has been living abroad since March 2013 and is renting out her UK property.  She has registered to receive all rental income with no tax deducted.

She was self employed until March 2013, this ceased prior to moving abroad and was dealt with on last year's tax return. 

Please could you clarify whether she needs to submit a tax return, and if so, which supplementary pages are required?

Thank you for your help.

Replies (6)

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By Sarah Saunders
21st Jul 2014 16:06

She will need to submit a return plus the property and residence pages. 

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By CrowtherP
21st Jul 2014 16:09

yes register under the NRL scheme

She needs to report; as some non-residents have a personal allowance; and some [non-European residents] do not.  Thus HMRC will require her to register under the NRL scheme and if there is any possibility her income will exceed the personal allowance, then she will need to file.

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By tebthereb
21st Jul 2014 22:14

HMRC's guidance

This may help;

http://www.hmrc.gov.uk/international/tax-return.htm#2

If there is no tax at stake I would not expect HMRC to insist on returns.

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By tebthereb
09th Feb 2015 14:14

Change in guidance

Has HMRC's approach changed? The link I gave before is now the new style website and suggests a return would be necessary.

The original content can be found here:

http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/inter...

It said:

You are a non-resident landlord

If your usual home is outside the UK but you receive rental income from property in the UK, your letting agents or tenants in the UK will have to operate the Non-resident Landlords Scheme. This means they may deduct tax at the basic rate from your rental income during the year and declare it to HMRC.

You will need to complete a tax return if:

the annual rent you have received is higher than your 'Personal Allowance' (this is the amount of UK income you can receive tax free)you are a higher rate taxpayer and the tax already paid by your letting agents and tenants does not cover what you owe

[my emphasis added]

 

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By tebthereb
11th Feb 2015 20:32

For anyone that cares...

I will answer my own question. HMRC practice is here:

http://www.hmrc.gov.uk/manuals/intmanual/INTM370040.htm

It say:

"We generally issue SA tax returns to those landlords whom we have authorised to receive their UK rent gross. However, we may not do so where a non-resident landlord who is an individual has no liability to UK tax (for example, because of allowable expenses or because their income does not exceed their UK personal tax allowances)."

[my emphasis]

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Alan_C
By [email protected]
24th Feb 2015 01:08

Legislative basis?

Some helpful comments in this thread.

I have posted a separate question on the legislative basis for the requirement to register for SA:

https://www.accountingweb.co.uk/anyanswers/question/obligation-lodge-uk-...

Thoughts appreciated.  Thanks!

 

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