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Income Tax - UK Resident & Non-Resident Landlords
Income tax is payable on rental income irrespective
of where you live. Landlords must declare this income
on a Self-Assessment Tax Return and if one is not issued
automatically he or she has a legal responsibility to
notify the Inland Revenue of any liability. As the Inland
Revenue assesses your income individually, properties
that are jointly owned require returns to be completed
by each legal owner. There is a requirement under Self-Assessment
to keep adequate records to ensure that the calculations
included in the return are accurate.
Deductible Expenses
Through careful planning we can help to reduce your liability.
Examples of deductible expenses that could be used to
reduce taxable profit derived from property income include
the following: -
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insurance, ground rent,
repairs & maintenance |
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Letting agents fees |
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'wear & tear' allowance
for furnished properties |
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Loan interest (MIRAS
was abolished on 6 April 2000 |
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legal and accountancy
charges |
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Unused 'personal allowances'
(applied by IR) |
Non-Resident Landlords (Landlords whose usual place of abode is outside the UK)
The legislation regulating Non-Resident
Landlords and their agents differ significantly from
Landlords residing in the UK.
CRL as the rent receiving agent, has a statutory obligation
to deduct basic rate tax on the net income and make
payments to the Inland Revenue quarterly. However, you
can apply to the Inland Revenue to "self-assess" your
own tax. To take advantage of this our Tax Department
will provide an application form, which upon approval
from the Revenue will authorise us to pay the rent without
deducting tax at source.
For all Landlords
For Non-Resident landlords
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Tax Basics - Annual statement
of all transactions made via CRL |
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Comprehensive Tax Summary
- Assists in completion of Land and Property section
of the Tax Return |
Services
For Non-Resident landlords
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Provision of the necessary
information and application forms regarding the
Non-Resident landlord scheme. |
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For overseas landlords
that have not applied /received "approval" CRL must
account to the Inland Revenue on a quarterly basis. |
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A certificate will be
issued to you by the 5th July as evidence if any
tax has been paid to the Inland Revenue on your
behalf. |
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Countrywide are obliged
to provide an annual return of information to the
Inland Revenue for all non-resident landlords. |
General
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Annual Tax Report - a
summary of income and expenditure transactions accounted
for by CRL can be provided. |
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Comprehensive Tax Computation
- an individual detailed summary can be produced
in the same format as the Land and Property section
of the Tax Return incorporating items accounted
for by CRL and additional information supplied by
you. |
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