Moving back to South Africa and Renting UK Houses (Assistance Required)

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Oct 21st 2010, 11:58 am

Marcman

Forum Regular

Thread Starter

Joined: Jun 2008

Location: Cambridge

Posts: 40

Moving back to South Africa and Renting UK Houses (Assistance Required)

Hello everyone,

I’ve done a bit of digging on the forum and I can’t seem to find info I need so I am wondering if anyone can offer assistance please in relation to Rental Houses in the UK whiles abroad.

Here are the details.

We are looking at moving back to South Africa soon as I’ve been offered a descent job; however I’ve been given very short timescales…..
I don’t have time to sell the houses I’ve acquired (1 rented out now) and other I’m living in which will need to be rented out as I’m tied into a substantial indemnity fee as well as the market being terrible!

I’ve been informed by my leasing agency that we need to fill in the tax form (NRL1)
And until they have that number, we will need to pay a 20% in come holding tax on rental income which is acceptable.

Here comes the issue, the one house has been rented out for nearly 5 years now has never been declared. (I know it’s our fault as we have been ignorant)

If we fill in this form, does anyone know if they will pick up how long the 2nd house has been rented out and if so will they back date the income acquired?
Stressful as you can image, however I have no clue where even to begin.

Anyone got some input or similar experiences?

TAX and I don’t understand each other so any advice or pointers are greatly appreciated.

Thanks
Marc.

Oct 21st 2010, 1:55 pm

Pablo

BE Forum Addict

Joined: Feb 2005

Posts: 1,881

Re: Moving back to South Africa and Renting UK Houses (Assistance Required)

Quote:

Originally Posted by Marcman

You have my sympathy. I hate the Revenue. But if you don't want the stress, don't fiddle the tax. I know that sounds prim and pious, and I don't mean it that way. You may get away with it, but you may be unlucky and they may do a spot check.

If you come clean, you will have to pay back tax plus interest and a penalty. If you don't want to do that, then you will have to live with the worry.

Also, if you do end up selling your properties, make sure you don't get caught in the complicated rules relating to CGT. Just being out of the UK does not necessarily mean you are not liable.

Last edited by Pablo; Oct 21st 2010 at 1:58 pm.