Hello
I was hoping if someone could kindly advise what is the tax rate for income generated from holday rentals in London?
Tax Question
- bananacake
- Posts: 384
- Joined: Tue Dec 01, 2009 9:55 am
- Location: Adriatic Coast, Pescara, Italy
- Contact:
- bananacake
- Posts: 384
- Joined: Tue Dec 01, 2009 9:55 am
- Location: Adriatic Coast, Pescara, Italy
- Contact:
-
- Posts: 1
- Joined: Wed Nov 14, 2012 12:48 pm
Hi,
Unfortunately, income arising from UK property is always taxable in the UK, regardless of your residence/domicile under the Income Tax Act of 2007.
Assuming your rentals are above £100 per week then the Non Resident Landlords Scheme applies [http://www.hmrc.gov.uk/cnr/nrl_guide_notes.pdf].
Your letting agent (or the tenant directly if you don't have one) must deduct basic rate tax (20%) at source, that is from your lettings rate. They must pass this directly to HM Revenue and Customs.
Clearly, I doubt you'd want your holidaying clients dealing with this legislative requirement, in which case you will need to apply to HMRC to receive your rents Gross and will therefore be required to complete a Self-Assessment tax return each year.
Hope that helps!
Unfortunately, income arising from UK property is always taxable in the UK, regardless of your residence/domicile under the Income Tax Act of 2007.
Assuming your rentals are above £100 per week then the Non Resident Landlords Scheme applies [http://www.hmrc.gov.uk/cnr/nrl_guide_notes.pdf].
Your letting agent (or the tenant directly if you don't have one) must deduct basic rate tax (20%) at source, that is from your lettings rate. They must pass this directly to HM Revenue and Customs.
Clearly, I doubt you'd want your holidaying clients dealing with this legislative requirement, in which case you will need to apply to HMRC to receive your rents Gross and will therefore be required to complete a Self-Assessment tax return each year.
Hope that helps!