Landlord tax services

Tax services for overseas investors

If you are an overseas landlord in the London property market, UK tax compliance is not optional. It is a part of owning property in the country. Benham & Reeves assists you with structured assistance with UK tax filing, with a solid focus on personal income tax returns for non-resident property owners.

Our role is to ensure your rental income is reported correctly, filings are submitted on time and all obligations are met in accordance with the current UK guidelines.

Letting property in the UK

The rental income you generate from the UK rental property is subject to UK income tax. The amount of tax you need to pay is calculated on net rental profit after deducting allowable expenses. As a landlord, you will also be required to submit an annual Self Assessment tax return to HM Revenue & Customs (HMRC), declaring rental income and confirming any tax due.

If a residential property is held within a corporate structure and valued above £500,000, an Annual Tax on Enveloped Dwellings (ATED) return may also be required.

UK Non-Resident Landlord Scheme

Under HMRC’s Non-Resident Landlord Scheme, letting agents in the UK must deduct income tax at the basic rate, which currently is at 20%, from net rental income before remitting funds to a non-resident landlord; unless HMRC has approved payment of rent without any sort of deductions. This scheme applies to non-resident individuals, companies, trustees and pension funds.

UK Capital Gains Tax (CGT)

Since April 2015, international owners are liable for UK Capital Gains Tax when disposing of UK residential property. The disposal should be reported to HMRC within 30 days of completion. If the seller does not already have an HRMC record, any tax due is payable within the same timeframe.

For details of our fees, please contact us using the form below.