Non-Resident Landlord Scheme
#16
Re: Non-Resident Landlord Scheme
Tirytory,
Yes, I use the Andica software for my UK return self assessment. I also complete the Residence and Remittance basis/allowance supplements. In that I mark that I was not resident in the UK for the tax year, that I had a home overseas, and that I am entitled to claim the personal allowance as a non resident, resident in the USA for tax purposes etc,......
This is how both PWC and Deloitte have previously completed my UK return when they were contracted to do that for me...?
Yes, I use the Andica software for my UK return self assessment. I also complete the Residence and Remittance basis/allowance supplements. In that I mark that I was not resident in the UK for the tax year, that I had a home overseas, and that I am entitled to claim the personal allowance as a non resident, resident in the USA for tax purposes etc,......
This is how both PWC and Deloitte have previously completed my UK return when they were contracted to do that for me...?
Did you put a special form in to claim personal allowance then? This was the first year I had to the remittance forms and I didn't see anywhere to mark anything. Admittedly I'm learning as I go
#17
Forum Regular
Joined: Oct 2012
Posts: 111
Re: Non-Resident Landlord Scheme
I'm curious that's all. My understanding of it is is there are special exemptions but if you're Mr/Mrs Ordinary then you don't qualify. After all why would the UK government continue to give you a personal allowance when nothing is given back?
Did you put a special form in to claim personal allowance then? This was the first year I had to the remittance forms and I didn't see anywhere to mark anything. Admittedly I'm learning as I go
Did you put a special form in to claim personal allowance then? This was the first year I had to the remittance forms and I didn't see anywhere to mark anything. Admittedly I'm learning as I go
Tirytory,
I thought that all British nationals were entitled to the allowance, but I must admit I don't really know too much about it - in fact, I'm sure that there are people on here that have forgotten more about it than I know! Best to ask someone qualified to answer these questions, or hopefully someone qualified will chime in!
#18
Re: Non-Resident Landlord Scheme
They were, but I think it was withdrawn for non-residents. At very least it has been discussed recently. I have negligible UK income that isn't already taxed, so it doesn't impact me either way.
#19
Just Joined
Joined: Sep 2011
Location: Bay Area
Posts: 13
Re: Non-Resident Landlord Scheme
Someone on here linked to form R43. This is entitled 'Claim to personal allowances and tax repayment by an individual not resident in the UK'. The title seems clear, but after a brief chat with HMRC I'm not convinced it's applicable. As there are so many of us in the same situation it would be great to nail the facts and add to the wiki.
Can anyone answer definitively which forms need to be completed by a British citizen who is tax resident in the US and is renting out a UK property?
Can anyone answer definitively which forms need to be completed by a British citizen who is tax resident in the US and is renting out a UK property?
#20
Re: Non-Resident Landlord Scheme
Thanks for all your help! My next question is: can all these details concerning a foreign property be handled by tax software such as H&R Block? Or do you really need to file through a professional when you are receiving rental income and listing all the deductions, like depreciation etc?
Turbo tax is similar. Just makes sure you have answered the question about being a foreign property.
you letting agent will need to be registered with the HMRC if they are not already.
You need to apply for self assessment.
I have used both a CPA specializing in expats and turbotax/HR block and found very little difference in the advice. There are also some blog sites.
#22
Re: Non-Resident Landlord Scheme
So I've done my self assessment already this year as I rent a house out too. I used one of the software listed (ABC I think) to complete the relevant forms. If you live abroad you can't just use Self Assessment,you have to complete additional remittance forms also. Also I'm fairly sure you're not entitled to a personal allowance. I had to pay tax this year and I wouldn't have needed to if I had a personal allowance.
ends in 2017 apparently. however I think as a US resident/citizen the US has first dibs on the tax. Will that be deductible against UK taxes, not sure.
It appears the UK Govt is trying to kill off the private rental market.
#23
Forum Regular
Joined: Oct 2012
Posts: 111
Re: Non-Resident Landlord Scheme
UK Expats - Income Tax Personal Allowance Lives On | GM Expat Tax
ends in 2017 apparently. however I think as a US resident/citizen the US has first dibs on the tax. Will that be deductible against UK taxes, not sure.
It appears the UK Govt is trying to kill off the private rental market.
ends in 2017 apparently. however I think as a US resident/citizen the US has first dibs on the tax. Will that be deductible against UK taxes, not sure.
It appears the UK Govt is trying to kill off the private rental market.
#24
Re: Non-Resident Landlord Scheme
UK Expats - Income Tax Personal Allowance Lives On | GM Expat Tax
ends in 2017 apparently. however I think as a US resident/citizen the US has first dibs on the tax. Will that be deductible against UK taxes, not sure.
It appears the UK Govt is trying to kill off the private rental market.
ends in 2017 apparently. however I think as a US resident/citizen the US has first dibs on the tax. Will that be deductible against UK taxes, not sure.
It appears the UK Govt is trying to kill off the private rental market.
The danger will be that, unlike homeowners, private landlords facing a hopeless negative equity situation are much more likely to just abandon the house, which if it is only saleable at, say, half its price when bought on finance, say, five years ago, could leave the mortgage bank suffering a heavy loss. E.g. price: £300,000, amount financed: £240,000, amount paid off the principal over five years: £10,000, post-collapse sale price: £150,000, loss to bank: £80,000!
Last edited by Pulaski; Jan 20th 2016 at 3:37 am.
#25
Forum Regular
Joined: Jan 2016
Location: Cambridge, MA
Posts: 239
Re: Non-Resident Landlord Scheme
UK Expats - Income Tax Personal Allowance Lives On | GM Expat Tax
ends in 2017 apparently. however I think as a US resident/citizen the US has first dibs on the tax. Will that be deductible against UK taxes, not sure.
It appears the UK Govt is trying to kill off the private rental market.
ends in 2017 apparently. however I think as a US resident/citizen the US has first dibs on the tax. Will that be deductible against UK taxes, not sure.
It appears the UK Govt is trying to kill off the private rental market.
#26
Re: Non-Resident Landlord Scheme
They have also made tenants of HMOs responsible for council tax, implemented more and more controls on housing quality(which is good). Forced water meters on HMOs. So the low cost housing no longer exists. Where once a self contained bedsit in a shared house was quite affordable, now you have a water bill and a council tax bill whereas before the landlord would quite often include the fixed cost in the rent. For example a band B house gets turned into 3 band A properties.
#27
Re: Non-Resident Landlord Scheme
I'm confused. Had I been allowed a personal allowance and didn't make a profit over that (definitely not) why did I have to pay tax? Admittedly it was a nominal amount but the personal allowance would have meant none to pay.
#28
Re: Non-Resident Landlord Scheme
HMRC is fully aware that I am not a UK resident and send all my mail to my US address.
#29
Forum Regular
Joined: Oct 2012
Posts: 111
Re: Non-Resident Landlord Scheme
Probably didn't tick the boxes indicating non-resident status and eligible for PA on the tax returns..? As long as I tick those boxes Andica calculates that I don't owe anything (house is our only UK income.)
Last edited by FatFrank; Jan 21st 2016 at 1:27 am.
#30
Re: Non-Resident Landlord Scheme
Phoned them this morning! Indeed I didn't tick Box 16/17 on form 109, so I now a tax refund on its way to me.
Do I now just get taxed in Canada on this do I? Through to duel taxation laws. I wish I understand all of this! Sorry for hijacking thread op and thank you for starting it!!!!