Any non-resident landlords out there?
Nov 21st 2007, 10:49 am
#1
Forum Regular
Thread Starter
Joined: Sep 2007
Location: Sydney
Posts: 32
Any non-resident landlords out there?
Hi,
I would welcome a steer from anyone who is already a NRL.
My wife and I are just in the process of arranging a letting agent to ideally let our 4-bed house in the UK from the beginning of 2008.
I am just about to complete the HMRC NRL1 form and realised that if we have the letting contract in joint names, we presumably both have to fill in NRL1 forms and then both get sucked into the world of annual Self-Assessment returns for our joint income on a single house.
Does anyone have a view on whether it is better to put the letting contract into just one name and then just submitting one NRL1 form? Is there also any benefit to putting it in my wife's name as she is likely to be the lower earner (and will be full-time as a mother in the first year or so)?
Dave
I would welcome a steer from anyone who is already a NRL.
My wife and I are just in the process of arranging a letting agent to ideally let our 4-bed house in the UK from the beginning of 2008.
I am just about to complete the HMRC NRL1 form and realised that if we have the letting contract in joint names, we presumably both have to fill in NRL1 forms and then both get sucked into the world of annual Self-Assessment returns for our joint income on a single house.
Does anyone have a view on whether it is better to put the letting contract into just one name and then just submitting one NRL1 form? Is there also any benefit to putting it in my wife's name as she is likely to be the lower earner (and will be full-time as a mother in the first year or so)?
Dave
Nov 21st 2007, 11:45 am
#2
Forum Regular
Joined: Jun 2007
Location: Plymouth, England
Posts: 86
Re: Any non-resident landlords out there?
I think if the house is in joint names then you both have to do self assessments. We have to on the houses we own that are rented out.
Nov 21st 2007, 12:01 pm
#3
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Thread Starter
Joined: Sep 2007
Location: Sydney
Posts: 32
Re: Any non-resident landlords out there?
so you are saying it is a question of the ownership of the house irrespective of the number of names on the letting contract?
Dave
Dave
Nov 21st 2007, 12:20 pm
#4
Just Joined
Joined: Nov 2007
Posts: 7
Re: Any non-resident landlords out there?
Not 100% sure but.......... I think that if the mortgage is held in joint names as 'Joint Tenants' i.e. 50/50 then you both have to be on the letting contract.
From a tax point this is probably beneficial because
1. you will be able to offset 100% of any mortgage interest payable from your letting income.
Otherwise you would only be able to deduct the portion (assuming this is 50%for a joint tenants mortgage) that you are legally liable to pay
2. you can use both UK personal allowances to offset any tax payable on letting profits
If you hold a temporary resident visa for australia you are not liable to pay tax (income or capital gains) on any assets held outwith Australia. If you hold a permanent resident visa you will have to pay australian tax on UK rental income but you get relief for any uk tax paid.
Hope this helps
From a tax point this is probably beneficial because
1. you will be able to offset 100% of any mortgage interest payable from your letting income.
Otherwise you would only be able to deduct the portion (assuming this is 50%for a joint tenants mortgage) that you are legally liable to pay
2. you can use both UK personal allowances to offset any tax payable on letting profits
If you hold a temporary resident visa for australia you are not liable to pay tax (income or capital gains) on any assets held outwith Australia. If you hold a permanent resident visa you will have to pay australian tax on UK rental income but you get relief for any uk tax paid.
Hope this helps
Nov 21st 2007, 12:24 pm
#5
Forum Regular
Joined: Jun 2007
Location: Plymouth, England
Posts: 86
Re: Any non-resident landlords out there?
Yes, we have to do individual self assessments for 50% earnings/outgoings on our houses as we have joint mortgages.
