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My son has lived in Dubai, with his family, for the last ten

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My son has lived in Dubai, with his family, for the last ten years; he doesn't own a property or have a bank account here; he only returns for two or three weeks for a holiday each year, and he hasn't submitted a UK tax return throughout that time. He will probably return here to live in about five years and, in the meantime, he is considering buying a property which he would rent out. Is there any danger that by doing so he will invalidate his non-resident status and will he have to pay cgt if he sells the property, either before or after he reurns?

Many thanks, XXXXX XXXXX
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello,
If your son is not UK resident then he would still be taxed on rental property he owns in the UK.
According to HMRC:
"If you have rental property in the UK but your usual home is outside the UK, your tenants or the letting agents you use will need to operate the Non-resident Landlord (NRL) Scheme. They need to deduct basic rate tax from rental income before they pass it onto you."
Your son as a Non-resident landlord can apply to receive his rent with no tax deducted on the basis that either:
his UK tax affairs are up to date
he has not had any UK tax obligations before he applied
he does not expect to be liable to UK Income Tax for the year in which he applies
he is not liable to pay UK tax because he is sovereign immunes (these are generally foreign Heads of State, Governments or Government departments)
Having the rental would not change his residency.
The HMRC office dealing with the non-resident landlords scheme is:
HMRC Personal Tax International
Operations, S0708
PO Box 203
Bootle
L69 9AP
As afar as capital gains, yes he would be liable for CGT if he sells. Entrepreneurs’ Relief can reduce the amount of Capital Gains Tax for individuals
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 14435
Experience: International tax
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