Tax return service for overseas investors
As your global property partner, Benham and Reeves offers a one stop service to include assistance with UK taxation. We specialise in the preparation of personal tax returns for our overseas clients.
Letting property in the UK
UK income tax is payable on net rental income, after deducting allowable expenses on properties owned within the UK. Landlords must submit an annual self-assessment tax return to HM Revenue & Customs (HMRC), the UK tax authority, to declare any tax payable. Additionally, if your property is valued at over £500,000 and is owned within a corporate structure then an Annual Tax on Enveloped Dwellings (ATED) return must also be submitted. This is the case even if the properties are rented and as such are exempt from paying ATED tax.
UK non-resident landlord scheme
Under the HMRC Non Resident Landlord Scheme, Letting Agents legally have to deduct tax at the basic rate of UK income tax from net rental income (after making deductions for allowable expenses) from all overseas landlords unless they have received approval from HM Revenue & Customs in writing. The scheme applies to all non-resident landlords including individuals, companies, pension funds and trusts.
UK Capital Gains Tax (CGT)
From April 2015 overseas landlords are also liable to capital gains tax when they sell their property. The sale must be reported to HMRC within 30 days of completion and if the vendor has no previous relationship with HMRC any tax liability must be paid at that time.
We can prepare annual accounts, complete self-assessment tax returns, ATED and CGT returns and advise on any payments needed to be made. Details of our current fees can be found here or you can email us here.