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Living Abroad Landlord

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Author Topic: Living Abroad Landlord  (Read 74 times)
Newbie
Posts: 5

I like property

« on: October 16, 2020, 11:05:01 AM »

Hi, my friend's property is managed by an agent, and he is classified as an oversea landlord. When paying for the oversea landlord tax, is it 20% of the full rental income, OR 20% after agency management fee? Please help? Thanks in advance.
Newbie
Posts: 8

I like property

« Reply #1 on: October 16, 2020, 11:28:28 AM »

After the allowable expenses:Allowable expenses are things you need to spend money on in the day-to-day running of the property, like:

letting agents’ fees
legal fees for lets of a year or less, or for renewing a lease for less than 50 years
accountants’ fees
buildings and contents insurance
interest on property loans
maintenance and repairs to the property (but not improvements)
utility bills, like gas, water and electricity
rent, ground rent, service charges
Council Tax
services you pay for, like cleaning or gardening
other direct costs of letting the property, like phone calls, stationery and advertising
Newbie
Posts: 24

I like property

« Reply #2 on: October 16, 2020, 02:03:16 PM »

If he hasn't already, your friend should make an arrangement direct with HMRC to pay the tax so that it's under his control and does not need to be deducted by the agent.
Newbie
Posts: 2

I like property

« Reply #3 on: October 26, 2020, 07:31:23 PM »

He needs form NRL1 I think - you just fill in the form and send it to HMRC.  Your friend has to complete it with the date they left the UK and overseas address and that information may be available to the tax authorities of the country he now lives in.  Your friend will likely have to pay tax in  their rental income in the country they now live in and to also declare it in the UK.  If there is a dual tax agreement then any double tax paid can be claimed back from the UK eventually.  Pensions may be also included in the tax return of one or the other country and  there may be different tax years to contend with for each country. 
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