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I own a property in the UK where my Mother lives. She has

 
Andrew Baker(baktax)'s Avatar
  • Answered by:Andrew Baker(baktax)
  • Personal Tax Adviser
  • Positive Feedback: 98.6 %
  • Accepted Answers: 756
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in UK Tax

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simple direct answer thanks
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Customer Question

I own a property in the UK where my Mother lives. She has minimal income and savings. I receive no rental income, but I pay the mortgage.

I am a resident of Canada where I pay income tax under the Canada-UK double taxation agreement.

Are there an tax efficiencies I can achieve to offset the costs of owning the UK home.

Submitted: 423 days and 2 hours ago.
Category: UK Tax
Value: CA$15
Status: CLOSED

Accepted Answer

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Expert:  Andrew Baker(baktax) replied423 days and 2 hours ago.


XXXXXX XXXXX (baktax) :

Hi

XXXXXX XXXXX (baktax) :

Unfortunately this are no tax reliefs available in respect of your UK property as you are not in receipt of rental income.

XXXXXX XXXXX (baktax) :

If you were you would be able to offset items such as mortgage interest, insurance, repairs etc

XXXXXX XXXXX (baktax) :

Should you decide to sell the property in due course you may possibly qualify for exemption based on your non-resident status.

XXXXXX XXXXX (baktax) :

To qualify you need to have been non-resident for at least 5 complete tax years (6th April to the following 5th April) with exchange of contracts taking place whilst you have this status.

Expert TypePersonal Tax Adviser
Category: UK Tax
Pos. Feedback: 98.6 %
Accepts: 756
Answered: 3/21/2012

Experience: 35+ years experience in income tax, CGT, non-residence

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Expert:  Andrew Baker(baktax) replied423 days and 2 hours ago.

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Expert:  Andrew Baker(baktax) replied423 days and 2 hours ago.

I hope this helps

 

Kind regards

 

Andrew (baktax)

 
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