UK Tax Questions? Ask a UK Tax Advisor for answers ASAP
We are both UK citizens. The property will rent for about 1000 pcm and service charges will be 93 pcm so rental income of approx 900 pcm but my husband also has income of 675 pcm from his house which provides 603 pcm after estate agent fees. As he is not receiving SA forms I am concerned about starting it up and all the paper work involved for his tax as well as mine which will mean filling in 2 NRL forms - he has already filled in one for his house rental.
I think I am obliged to fill in a non resident landlord form if I rent in the UK, my husband filled one in for his house which is in his sole name and rents through an estate agent. My concern is that if the new property we buy property is in joint names we will have to fill in 2 NRL forms and then my husband will have to declare both properties and will be over his personal tax allowance. The new property will be rented privately not via an estate agent. Are we obliged to fill in a NRL. I spoke to HMRC and they said I was otherwise the tenant was required to withhold the tax.
When I spoke to HMRC they said it was my responsibility to fill in a NRL. It is doubtful a tenant would know they had to deduct tax
So should we just rent it out and see if the tenant raises it?
The letting agent has completed the form so all is straight with that property. The new property will be rented privately - I have 2 concerns
'1 - in joint names we will have to fill in another 2 NRL forms. With approx. 500 form the 50/50 of the rent of the new property plus 603 from his sole property it will put my husband over his personal tax allowance.
2-If my husband owns one property in his sole name and another in joint names when he sells one of them will he be liable for CGT if we return to the UK or remain abroad?
Could we buy the property in joint names and then claim I am the sole recipient of the rental income to save my husband filling in tax forms?
I think it may be best to buy in my name to save extra paperwork. If I fill in a NRL will HMRC automatically start sending me tax returns?
I think the personal allowance for 2014 - 15 will be 10,000 is that correct?
I am thinking about buying the property as a short term investment as I have heard property prices are rising. I intend to sell in about 12 months and intend to remain in Bahrain. I heard non residents are not liable to CGT, I called HMRC today but they cannot give me information and directed me to help sheet 278, which did not help. Will I have to pay CGT and if so how much? This will determine if I buy or not?
Please double check - I heard non residents did not have to pay CGT and need to know rules before I buy -thanks.
I have not lived in Uk since 1997 and until then I was resident for 37 years. I am not ordinarily resident in Uk - I am completely non resident.
Difficult to understand what to do. If I do not declare non residency rental income (as it is duty of tenant to do this - who is likely not to know the rules) and then sell - what would be my CGT liability.
If I just buy and rent through my son, the tenant will know I am living abroad but not likely to understand their duty to withhold 20% tax. Should I then sell after 12 - 18 months would HMRC investigate this - do they keep records of UK property bought and sold quickly?
Seems like a minefield and sales letter have already gone out - not sure what to do about buying it now?