Newbie - Overseas with Tenant in UK - Tax implications

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    Newbie - Overseas with Tenant in UK - Tax implications

    Hi,
    I am currently living abroad and letting my flat out. The property is on a standard mortgage and not Buy to Let. Do I need to inform the bank? And do I need to pay tax on rental income as my mortgage costs are still £200 more than the rent is covering.
    Any advice would be greatly appreciated.
    Shayne

    #2
    Your mortgage is a residential one. You will not be residing there. To let the property will be a breach of your mortgage agreement and could result in the mortgage being called in. If that happens, and you can't afford to pay, that will probably result in repossession.

    So yes, you need either 'permission to let' or to transfer to a 'buy to let' mortgage.

    You need to register for HMRCs non-resident landlord scheme, alternatively your agent (or tenant if you have no agent) will have to send 20% of the rent to HMRC.

    Comment


      #3
      1. You need to submit a NRL1 form to hmrc to register as non-resident.

      2. The taxable rental profit is calculated from total annual rent less allowable expenses ( includes mortgage interest , service charge , ground rent . letting agent charges etc). mortgage capital repayment is not allowed. Any loss can be recorded on the tax return and carried forward to next year.

      3. If you have a UK or EU passport , you can claim personal allowance.

      Comment

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