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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Hello, I am 52 years old and about to inherit property

Resolved Question:

Hello,

I am 52 years old and about to inherit property in the UK which will give me a rental income of about 20,000 pounds. I am intending then to move to Malaysia (where I have some contacts) live on this rental income and work a little as a writer.

I'm worried that changes to personal allowances in the UK for non residents may mean all of my anticipated 20,000 rental income will be subject to much UK tax - possibly making the plan untenable.

Could you please tell me Is this true and can you estimate how much tax (presuming I have no other UK income)?

Yours faithfully,

Peter Dyer
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

There are no concrete plans to withdraw personal allowances for non-UK residents though, as you will read here, the government is reviewing the matter. All you can do is wait for an announcement as to whether legislation will be introduced on this I'm afraid.

If you keep your personal allowance and have no expenses to deduct from the rental income, you will pay tax of £2,000 (£20,000 - £10,000 x 20%). If you lose the personal allowance you will pay tax of £4,000 (£20,000 x 20%).

You should read the notes on the taxation of non-resident landlords here.

I hope this helps. Let me know if you have any further questions.
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