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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I own a leasehold flat and am proposing to rent it as I am

Customer Question

I own a leasehold flat and am proposing to rent it as I am resident overseas.Would the rental income attract any income taxes and,if so, at what rate? Would there be any deductables applied? I am over 60 years
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.
The rental income will be taxable in the UK but you will be able to deduct expenses that you would deduct if you were living in then UK. Take a look here for more information on deductible expenses:
http://www.which.co.uk/money/tax/guides/tax-on-property-and-rental-income/allowable-expenses-and-allowances/
If you fit one of the criteria at the link below, you will be entitled to a personal allowance to offset against any rental profit:
http://www.hmrc.gov.uk/manuals/rdrmmanual/rdrm10340.htm
As you are non-resident, you will need to register with the Non-Resident Landlord Scheme. You can read about that here:
https://www.gov.uk/tax-uk-income-live-abroad/rent
If tax is deducted from your rent, you will need to submit a tax return to have it repaid. If you consider that you won't make a profit or that any profit will not exceed your personal allowance, you can apply not to have tax deducted at source by the letting agent or tenant if you have no agent.
I hope this helps but let me know if you have any further questions.