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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 13599
Experience:  International tax
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Hi, Originally from the UK I am touring worldwide as part

Resolved Question:

Hi,

Originally from the UK I am touring worldwide as part of a Canadian circus company. I am considered a 'world non-resident', meaning I pay taxes only in the countries in which I work. I lived in Canada from 1988 - 2011.

As my tour will be winding up at the end of 2015, I am purchasing a small flat in the UK, with the view to returning there as a resident. For now, I would like to pay cash for a flat that is currently tenanted. Given my situation as a non-resident, non-UK taxpayer, how do I deal with the income tax from the rental revenue? What rate of tax will apply and how is this payable?

Please let me know if you require more information. Thank you!
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello,
Non-resident individuals in receipt of UK rental income have an obligation to register with HM Revenue & Customs (HMRC) and file a Self-Assessment Tax Return each year declaring any UK rental income.
HMRC requires UK letting agents (or tenants if the weekly rent exceeds £100 and no letting agent is appointed) to deduct basic rate tax (currently 20%) on any rental income they collect on behalf of non-resident landlords and pay this tax over to HMRC on a quarterly basis.

You are allowed to offset any tax deducted against your tax liability when you complete and file your UK Tax Return.
The HMRC office dealing with the non-resident landlords scheme is:
HMRC Personal Tax International
Operations, S0708
PO Box 203
Bootle
L69 9AP
Telephone: 03000 516644 or 516651 (from the UK)
Telephone: +44 3000 516644 or 516651 (from abroad)
Fax: 03000 547381

If you would like to read more about being a nonresident landlord please use this url:

http://www.hmrc.gov.uk/cnr/nrl_guide_notes.pdf

Customer: replied 2 years ago.
Hello,

Okay, that makes sense. Thank you for the info. Two brief ones to follow up:

A) Is the form easy to complete as a non-resident (i.e. is it a complete tax declaration) and B) Does the UK personal tax allowance having anything to do with this?

By the way, I looked into this this morning. I believe the Non-Resident Landlord's scheme requires a permanent address somewhere in the world...that is something I don't have, being constantly on the move. Is there a way around this with HMRC?

Thank you again.

Roger
Expert:  TaxRobin replied 2 years ago.
Hello Roger,
The form should not be that difficult for you. It will require that you list the income and list the expenses with the difference being taxable.
You would not receive the personal allowance.
The scheme does require an address if you are going to apply for no tax withholding. Unfortunately without one you will not be approved for the withholding exception.
Customer: replied 2 years ago.
Thank you.

Final question: can the address be that of my company (Cirque du Soleil) in Canada?

Roger
Expert:  TaxRobin replied 2 years ago.
You may be able to use that. The address is used to make certain that you can be reached in the event that you do not complete the income reporting.
I am not HMRC so I can not guarantee anything that HMRC would do or their initial response.
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 13599
Experience: International tax
TaxRobin and other Tax Specialists are ready to help you
Expert:  TaxRobin replied 2 years ago.
Hi Roger,
Thanks for using Just Answer again and please remember to rate the assistance (the site has changed a little since you were here last). Rating is required to let Just Answer know I assisted you.

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