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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15437
Experience:  International tax
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there. I am British and immigrated to Ecuador in 2009. I

Customer Question

there. I am British and immigrated to Ecuador in 2009. I have a house in the UK which I rent out and receive approx. 450 GBP per month rental income. I have no ther UK income whatsoever. Before I moved in 2009, the estate agency managing my property said that I did was exempt from taxes on the rental income - I think as I am an overseas landlord. I completed a form at the time (can't remember the number of the form) to notify the Inland Revenue that I was immigrating to Ecuador.
Approx 2 years after I moved, my mother came to Ecuador to visit and brought with her some mail which had been lying at my old property. In the mail was Self Assessment notification from the Inland Revenue with a penalty submitting. I assumed this was a mistake as I no longer lived there so I wrote a letter once again explaining my situation which I posted from Ecuador, giving my full address here. I never received any mail here in Ecuador from them. I also supplied my mother's address in the UK as a correspondence address as I would not receive any mail sent to my old property. My mother started receiving Self Assessment requests so I wrote to them again but never heard anything back from them. Recently, I called the Inland Revenue from Ecuador to find out why they continued to send me these demands with a penalty which is now sitting at a few thousand pounds. I was told that I should have been submitting Self Assessment forms this whole time and that I had to complete 5 years tax returns as well as another form declaring the rental income of those years......and would have to appeal to remove the penalty.
Could you please advise me if this is correct? They had my details that I was now overseas but continued to send mai to an address where I no longer lived so it was not my fault that I didn't receive it so I don't feel I should be liable to pay this penalty. DO I really have to complete a Self Assessment even though I have not lived in, or even been in the UK 5 years? THank you.
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
and thank you me to assist you.
Unfortunately the information you were given was not correct. You need to pay tax on your rental income if you rent out a property in the UK.
It is the fact that the property is in the UK not you that makes the rent income surced in UK.
You can get your rent either:
1)in full and pay tax through Self Assessment - if HMRC allows you to do this
2)with tax already deducted by your letting agent or tenant
You are required to declare your rental income in a Self Assessment tax return unless HMRC tells you not to.
Expert:  TaxRobin replied 2 years ago.
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