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Sam
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Category: Tax
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My wife and I have been non-resident 11 years during

Resolved Question:

My wife and I have been non-resident for almost 11 years during which time we rented out our sole property. I have returned (though not wife) since September 2014 and I have since earned some money from self- employment on which I have to pay tax and will do. Is there any tax liability for the rental income bearing in mind that my wife received some sort of tax exemption certificate when we left (but which we cannot find) and she is still non-resident in the UK? I am a Company Director as well but not earned any money from that company since its formation in 1993 as reflected in all corporate tax submissions, which are all up to date. Also, does one enjoy personal allowances when non-resident?
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question - I am Sam and I am one of the Uk tax experts here on Just Answer.
This may not have been a tax exemption certificate provided but the right to not have the tax deducted from the rental income by the managing agents (if you had one) or the tenants,and instead have your tax position reviewed each year end, but to do this, you should still have been making a self assessment tax return to HMRC (each of you) every year to
1) declare each of your shares of the rental income and the expenses (50%) and
2) To claim your personal tax allowances which could be sued to offset against the net rental income
If you did have the right to not pay tax in the UK on this rental income (as you have actually then have a double taxation certificate which does not usually cover rental income but certain pensions and investment incomes such as interest) then you would have had to declare this income to the taxation department of your country of residence (as one of the exemption expectations) but you also do not indicate this - so I would certainly urge you to correct this with HMRC as a matter of urgency!
But also in moving forward, as the property is in joint names, then you will add your share (50%) into your self assessment tax return which you should have been doing all along) and will also add your self employment - but have no income to declare on you self assessment for the directorship as its earned no income so I would assume this means you have drawn no salary and/or dividends.
So in answer to your direct question - yes you enjoy personal tax allowances to offset against any remaining UK income arising whilst non resident in the UK.
Let me know if you wish me to expand further.
Thanks
Sam
Customer: replied 2 years ago.

As a Company Director - I have drawn no salary or dividends. In fact, only in 2014 did it declare a turnover.

Since we both enjoy personal allowances, then there is not going to be a tax liability from the rental income.

I will contact HMRC to regularise the position.

Thank you

Expert:  Sam replied 2 years ago.
Hi
Thanks for your response and I am glad to have been of assistance (and to hear that the personal allowances will cover the net rental income position)
Do let me know if I can be of any further assistance but it would be appreciated if you could rate (or click accept) the level of service I have provided, as this ensures that Just Answer credit me for my time.
Thanks
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13810
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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