Specific Bank account for UK property income/ FHL?

Agencies and other headaches, keys and cleaners, running costs and contracts...in short, all the things we spend so much of our time doing behind the scenes.<br>
AndrewH
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Post by AndrewH »

With the OECD stepping up its game regarding a free flow of financial information in order to stem cross-border tax dodging, banks like HSBC must be finding themselves between a rock and a hard place.

Several UK high street banks will not accept customers who are resident outside the UK, but not so HSBC who have an international presence in the world. On the one hand they would like to protect their customers and keep their customers' affairs confidential. On the other hand they must comply with requests to divulge information where tax evasion is suspected by another country (their customer's country of residence).

My point is that an ordinary current account with HSBC intended by the customer, but not the bank, solely for the receipts of rental income arising from a foreign source is better than a business account with the bank, which is set up expressly for that purpose. To that add the fact that a business account carries certain bank charges which a private account does not.
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Nemo
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Post by Nemo »

Casscat wrote:Theoretically a qualifying FHL is a business and that income is self-employed earnings separated from other personal income. It would be harsh to require this to be paid into a business account though.
I'd disagree with this statement on the basis that for UK residents, as far as HMRC are concerned, it's income from property and not classified as self employed earnings. Of course that doesn't stop a bank applying their own rules as to what constitutes business income and therefore should be using a business bank account.
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Casscat
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Post by Casscat »

Nemo wrote:
Casscat wrote:Theoretically a qualifying FHL is a business and that income is self-employed earnings separated from other personal income. It would be harsh to require this to be paid into a business account though.
I'd disagree with this statement on the basis that for UK residents, as far as HMRC are concerned, it's income from property and not classified as self employed earnings. Of course that doesn't stop a bank applying their own rules as to what constitutes business income and therefore should be using a business bank account.
All I mean to imply by this is that it is separately accounted for and not added to taxable income from other sources. Income from qualifying FHLs is subject to its own taxation rules which are rather closer to those applying to self-employed earnings (in respect of allowable deductions etc.) than from, for example, investment income.
matesalka
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Post by matesalka »

I got the exact same call from Nattiest and have been informed that I can't receive rental income into my personal account as it is deemed used for business. They wrote me a letter where they sent me a copy of their terms and conditions where it is stated that my personal account can only be used for personal use (not business)

They have given me a month to open a business account otherwise if I still use the account to receive rental they will close my account. I feel quite disgusted. I have banked with them for 15 years. I am not looking into my options.
AndrewH
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Post by AndrewH »

matesalka wrote:I got the exact same call from Nattiest and have been informed that I can't receive rental income into my personal account as it is deemed used for business.
How, I wonder, can they tell if the income is rental income or not. I am presuming that the money comes from a guest's personal bank account to your personal account. Suspicions might arise if money arrives through a foreign bank, but that is for different reasons. E.g. suspicions relating to money laundering or tax evasion.

Edit: I have just thought that if the money is paid to your account by HomeAway Payments and the like, then of course they would know.
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