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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4973
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am a 54 year old who is thinking about leaving the UK permanently

Customer Question

I am a 54 year old who is thinking about leaving the UK permanently and retiring to Thailand on a Non-Immigrant Visa Category “O-A” (Long Stay, 1 year renewable). I will not become a national of Thailand and will retain my UK citizenship/passport.
In the UK, I have 2 properties with no mortgage. I currently live in 1 of the properties, the other is rented out. I work for a UK Company in IT and will be leaving my full time position with them soon.
All my tax affairs are up to date with the exception of completing the 2012/2013 Self-Assessment.
Rather than sell the properties and incur Capital Gains, I would prefer to rent both of the properties out when I leave the UK. Having read through HMRC’s guide to the NRL scheme can you please confirm my understanding is correct before I engage an Accountant to take care of my Tax affairs?

1. The Accountant will arrange for approval from HMRC to have the rent paid directly to me.

2. The Accountant will annually submit the self-assessment Tax return on my behalf.

3. I do not have to use a Letting Agent to manage my properties. I can use my Brother/Sister as the contact on the AST for any issues/repairs.


4. If the tenants decide not to renew the term of the AST then I can fly back to the UK to manage the transition of tenants – Tax deductible.

5. If I am out of the country for more than 5 “full tax” years and have complied with HMRC rules of being a non-resident and decide to sell my properties, I do not incur any capital gains tax on any of the properties.

6. Would you be able to confirm if I keep my UK personal allowance

7. As an adviser, what other tax affairs should I consider before leaving the country?
Submitted: 4 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 4 years ago.

Hello, if you have any questions or need further clarification after reading my answer please let me know.

 

Thank you for your question ...

 

I will revert to you with my answer shortly...

Please confirm it is okay ..

 

 

Many thanks

 

 

Customer: replied 4 years ago.

"


I will revert to you with my answer shortly...


Please confirm it is oaky .."


 


Please confirm "what" is oaky?

Expert:  taxadvisor.uk replied 4 years ago.

Roy, thank you for your reply..

 

I am sorry for the delay in responding due to internet site problems with error message. This error (HTTP 501 Not Implemented or HTTP 505 Version Not Supported) means that the website you are visiting doesn't currently have the ability to display the webpage, or support the HTTP version used to request the page.

 

I am struggling to send you the links ..

 

Here is my answer


1. The Accountant will arrange for approval from HMRC to have the rent paid directly to me.

 

Applications should be made by an individual . Declaration on page 4 clearly states "the form must be signed personally by the non-resident landlord. We cannot accept this form signed by an agent or nominee." see notes on hmrc website under hmrc.gov.uk/cnr/nrl1.pdf.

2. The Accountant will annually submit the self-assessment Tax return on my behalf.

The accountant as your agent can submit the tax return on your behalf.

 


3. I do not have to use a Letting Agent to manage my properties. I can use my Brother/Sister as the contact on the AST for any issues/repairs.

True, you do not have to use a letting agent to manage your properties.

4. If the tenants decide not to renew the term of the AST then I can fly back to the UK to manage the transition of tenants - Tax deductible.

 

This would only apply if you were managing your properties from abroad. If you are using your brother/sister as the contact on the AST then your travel costs would not be an allowable expense and not tax deductible.

5. If I am out of the country for more than 5 "full tax" years and have complied with HMRC rules of being a non-resident and decide to sell my properties, I do not incur any capital gains tax on any of the properties.

True ... more information on it can be found under Q6 on HMRC website hmrc.gov.uk/cnr/faqs_capgains.htm#cg3.

 


6. Would you be able to confirm if I keep my UK personal allowance

As UK National you will keep your UK personal allowance

7. As an adviser, what other tax affairs should I consider before leaving the country?

 

Please advise HMRC when you leave the country by completing form P85. This will ensure your tax records are updated and you pay the right tax. It can be downloaded from HMRC website hmrc.gov.uk/cnr/p85.pdf.

 

If you need more information please let me know before you rate my service.

 

I hope this is helpful and answers your question. I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page. If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.

 

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