Tax can be complicated but should not be overwhelming. Our brief tax guide below should give you some important pointers to help
Income received as a result of the letting of property in the UK is subject to Income tax even if you live abroad. Landlords who live abroad must provide agents with a ‘Non Resident Landlord exemption certificate’ in order that the agent can send the gross rental income without the UK Income Tax. If you do reside abroad and have not submitted the appropriate documentation then we can still send you the rent received but we must retain the portion that is subject to tax and then report back to the HMRC on a quarterly basis.
Stamp Duty Land Tax
Under the terms of the Finance Act 2003, tenants are liable for Stamp Duty Land Tax should their rent be in excess of £125,000 per annum. As a landlord you are not currently liable to pay for this tax when letting your property.
Occasionally landlords may choose to offer a premium lease. This is usually a payment made up front for the duration of the tenancy and this payment is coupled with a nominal rental payment. A premium lease has legal and tax implications and we would advise all landlords to seek professional advice prior to offering or agreeing to such proposal.
Professional Advice & Accounting Services
Case McNair are happy to recommend accounting professionals should you need advice specific to the residential lettings market.
Our accounts department will liaise directly with this tax service to ensure that all necessary accounting paperwork relating to the tenancy is made available to them. Please enquire within for further details