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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15720
Experience:  International tax
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If I purchase a property and become resident in the Isle of Man will I still pay taxes on

Resolved Question:

If I purchase a property and become resident in the Isle of Man will I still pay taxes on profits from my domestic rental portfolio (all in my personal name all based in the UK) to the UK Tax system or will I get the advantage of a lower 20% rate and pay my taxes to the IOM instead of the UK?
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello,Non residents of the UK with UK situs rental property pay tax on the rental to the UK.If you live abroad for 6 months or more per year, you’re classed as a ‘non-resident landlord’ by HM Revenue and Customs (HMRC) - even if you’re a UK resident for tax purposes.You can get your rent either:in full and pay tax through Self Assessment - if HMRC allows you to do thiswith tax already deducted by your letting agent or tenant
Expert:  TaxRobin replied 2 years ago.
FREE EXTRA INFORMATION FOR YOU As an IOM resident individual you will be liable to Manx Income Tax on your worldwide income on an arising basis. There is, however, double tax relief (DTR) on most income already taxed in another jurisdiction. The exception is UK dividends; the net dividend received is liable to Manx tax with no DTR. If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.
Expert:  TaxRobin replied 2 years ago.
Please advise if you need more information but rating in a positive way is acceptable.
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Customer: replied 2 years ago.
Hi Thank you for your answer, I guess the IOM is not the place for me :-(