Insights: industry newsletters on tax for landlords of UK property
Insights: industry newsletters on tax for landlords of UK property, whether residents in the UK or non-residents.
Tax returns for the UK property landlord. Making UK tax easy for property owners. Whether you are a UK landlord or a non-resident landlord, Landlords Tax Services provide a complete property tax service which ensures your UK tax affairs are dealt with on time and worry-free. We do it all online and for a fixed fee. No surprises. No stress. Landlords Tax Services offer the easy, professional way to deal with the UK tax obligations of landlords. UK property tax laws are ever-changing and, with more and more people becoming investors and landlords of properties in the UK, Landlords Tax Services have created an easy to use service aimed at providing new or experienced landlords with an efficient system to fulfil their UK property tax needs. Tax Returns for landlords of UK property: the complete tax service for residential property landlords. Our UK based landlord tax accountants can help you comply with UK property tax laws wherever you are in the world. We provide an online, fixed fee property tax service that ensures that the UK tax liability of landlords is kept to a minimum. Our mission is to deal with all our clients’ tax affairs on time and with no stress.
Owners of UK rental property who live outside the UK are obliged to register for UK taxes whether any tax is due or not. The UK has Tax Treaties with over 300 other countries. These treaties generally include sections designed to prevent the same income being taxed twice. Usually the UK will tax UK rental income first and the other country will allow you to deduct the UK tax from the local tax up to an amount equal to the local tax. Tax returns for the UK property landlord. British and EEA citizens living anywhere in the world, along with many other people living in the country of which they are citizens, are entitled to the UK “Personal Allowance”, a £NIL band rate that means the first £12,570 of profit from rental may be free of tax in the UK, and profits between £12,570 and £50,270 are taxed at 20%. Higher rates apply to UK income in excess of £50,270 (2021-22 rates).
- Making Tax Digital: an introductionPublished 17th August 2021; Updated 19th October 2021 Making Tax Digital: an introduction UDPATE: Quarterly UK tax reporting postponed to 2024! Some important changes are being made to the way HMRC collects information about your income from UK property The changes are a result of the HMRC “MTD” (Making Tax Digital) initiative. These changes don’t come into effect for some time, but we want you to be ready when they […]
- Finance cost reliefPublished 17th February 2020; Updated September 2021 Still puzzled by the S24 restriction or finance cost relief? See the easy-to-read full explanation From 2020 the tax relief that landlords of residential properties get for finance costs is being restricted to the basic rate of Income Tax. The finance cost relief is now given as a reduction in tax due. The definition of finance costs includes: mortgage interest and interest on […]
- Your UK bank account may be closing soonPublished 6th November 2020; Updated 2nd August 2021 The Brexit effect In November 2020 we published an article explaining why a number of UK banks were closing the accounts of customers living in the EU. That was a consequence of Brexit. The article is reproduced at the bottom of this newsletter. We must now report that a number of other transactions are being frozen and in some cases accounts are […]
- Capital Gains Tax has changedPublished 29th April 2021 With effect from 2020: All disposals of residential property by UK residents has to be reported within 30 days of the completion of the sale using an online provisional Capital Gains Tax Return, and pay a provisional amount of CGT within the same 30 days. The disposal may still have to be reported in a full Self Assessment Return at the normal time. All disposals of […]
- Pensions for high earnersPublished 27th March 2017; Updated April 2021 This note applies to UK residents only The tapered annual allowance came into force as 2016 and was changed with effect from 2020 for high earners. For every £2 of income above £240,000 per annum, £1 of annual allowance will be lost. The reduction is capped so that the minimum allowance you will get is £4,000. An income floor will mean the taper […]
- What happens to your property when you diePublished 26th February 2019; Updated April 2021 A guide for those who are not domiciled in the UK, and not UK resident If you live outside the UK and have neither you nor recent ancestors came from the UK, then this article applies to you. If you have recent ancestors (2 generations) who came from the UK, then this article may not help and you should take separate advice regarding […]
- UK tax compliance to get more complicated for some non-resident companiesPublished 25th September 2018; Updated 15th November 2018 / April 2021 The content of this newsletter applies to non-UK companies holding UK investment property and which derive most or all of their UK income from the property. With effect from April 2020 all non-resident UK property rich companies have been subject to the full UK Corporation Tax regime instead of the previous simplified Income Tax regime. The note from HMRC […]
- Not filed your Tax Return yet? It is now about to get very, very expensivePublished 22nd February 2013; Updated April 2021 So just how much will you have to pay? It used to be the case that it didn’t matter if you filed your Tax Return late if there was no tax to pay because the penalty could not exceed the tax due. No longer such luxury. Now whether you have tax to pay or not there are automatic penalties for late filing and […]
- British and own property in the EU? Read thisPublished 19th December 2019; Updated April 2021 UK based owners of property situated in the EU may pay higher taxes after Brexit Several EU countries charge higher rates of tax to non-EU residents and after Brexit everyone living in the UK is in that category. For example, the Spanish rate of Income Tax on rentals jumped from 19% to 24% immediately Britain left the EU. On top of that, under Spanish […]
- Don’t pay twice: an introduction to Tax TreatiesPublished 18th February 2019; Updated April 2021 Relief for UK tax paid – an introduction to Tax Treaties and Double Taxation Conventions and how they can help you The UK has entered into a Tax Treaty with over 130 countries. The Tax Treaty between the UK and another country gives us guidance as to which country has first taxing rights, and what relief you may get in your own country […]
- Capital Gains Tax and the Principal Private Residence ReliefPublished 11th February 2013; Updated July 2015 / April 2021 Everyone thinks they know the rules, but few get it right Capital Gains Tax (CGT) is a tax on the gain realised on the disposal of an asset. When it comes to a landlord’s rental property there are many misconceptions and, dare we say, wacky ideas about how to avoid the tax. In this article we deal with the disposal […]
- Too late? HMRC may not refund youPublished 6th November 2019; Updated April 2021 Don’t leave it too late: HMRC may not refund you You may have overpaid H.M. Revenue & Customs HMRC for a whole variety of reasons: Your PAYE coding may have been wrong You may have forgotten to claim relief for something like a pension contribution or Gift Aid Your letting agent may have paid tax on your behalf that was greater than your liability […]
- Can your house be stolen?Published 6th October 2012; Updated 29th November 2018 / April 2021 The quick answer is YES! Here is a true horror story of how a teacher in Hove had his house stolen. In 1998 Mr Hawthorn decided to take a sabbatical from his job as a science teacher in Sussex. He rented out his home in Hove and went as a volunteer to Laos. In 2000 he decided he would stay […]
- Non-Residents: beware of changes to Capital Gains TaxPublished 5th March 2019; Updated 21st March 2019 / April 2021 Notifying HMRC From 2019 you must file a Disposal Return whenever you dispose of UK property including: residential property and non-residential property (including, student accommodation, commercial property, hotel rooms, and care-home rooms) The notification to HMRC MUST be filed within 30 days of completion (closure) or you will be charged a large penalty (sometimes over £1,000) We will deal […]
- Budget 2021: Key points at-a-glancePublished 8th March 2021 The UK Chancellor delivered his budget on Wednesday 3rd March 2021 when he announced changes to UK tax. This budget was notable for how little has been changed. The following notes are the highlights we think will interest landlords! Income Tax The rates of income tax are unchanged. The bands of income to which they apply are slightly increased for 2021-22 reducing (slightly) the tax burden. […]
- Emails offering Tax Refunds are fraudulentPublished 12th March 2019 Many clients ask us about emails they have received offering refunds of tax. They are all fraudulent scams Treasury Minister Mel Stride MP, the Financial Secretary to the Treasury, said: HMRC only informs you about tax refunds through the post or through your pay via your employer. All emails, text messages, or voicemail messages saying you have a tax refund are a scam. Do not click […]
- ATED: Valuation dateFirst published 27th March 2017; Updated 15th November 2018 Residential property owned by a company is potentially subject to Annual Tax on Enveloped Dwellings where the value on the valuation dates is more than £500,000 Relief from Annual Tax on Enveloped Dwellings (ATED) may be available if the use of the property meets one of several criteria including commercial letting or development. Whether your property qualifies for relief or not […]
- Replacement of furnishings and equipmentPublished 27th March 2017 The 10% Wear and Tear Allowance was introduced in 1975-76 as an alternative to the replacement basis for calculating a deduction for replacing items of furnishings or equipment in a fully furnished residential letting property. In 2013 the replacement basis was withdrawn. Now the Wear and Tear Allowance has been withdrawn with effect from 2016. From 2016 (1st April 2016 for company landlords paying Corporation Tax) […]
- Property AllowancePublished 27th March 2017 The Property Allowance is available from April 2017 The Property Allowance is an allowance of £1,000 that may be used instead of the normal or usual method of calculating deductions from rents etc. It will only be of benefit to those with very low outgoings. Example 1 Alan lets out his car parking space for £800. He has no outgoing costs. He may deduct £800 Property […]
- Who you should tell about your UK incomePublished 11 July 2013 A cautionary note for landlords who live away from their own countries In some countries the basis of taxing individuals is dependent on their citizenship (e.g. USA) while in others it is dependent on their residency. A further complication occurs because if you have income arising in a country of which you are neither resident nor a citizen that country will have the first right to […]