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TonyTax, Tax Consultant
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Dear Sire, I have a question regarding the NRL1i, Im a

Resolved Question:

Dear Sire,
I have a question regarding the NRL1i, Im a lebanese person and i live outside UK, I have purchased 2 student accommodation in Luton, and 2 residential flats in Liverpool. this investment will generate for me around around GBP 22,000 annually.
My question, if I apply for the NRL1i and i got approved will I have to pay income tax on this amount? what will be the rates segments for income tax for non resident landlord. because im thinking of buying another 2 .
thank you and i really appreciate your reply.
Submitted: 6 months ago.
Category: Tax
Expert:  TonyTax replied 6 months ago.

Hi.

Let me take a look at this and I'll get back to you.

Customer: replied 6 months ago.
Thank you, ***** ***** not the income is rental income, these are investment properties, lease hold for 250 years ownership
Expert:  TonyTax replied 6 months ago.

OK.

Expert:  TonyTax replied 6 months ago.

I need one other piece of information from you. Do you live in Lebanon? If not, where do you live?

Customer: replied 6 months ago.
No I live in Kuwait, im resident in Kuwait
Expert:  TonyTax replied 6 months ago.

Thanks.

Expert:  TonyTax replied 6 months ago.

The fact that you apply for your rental income to be paid to you without deduction of tax at source and are successful in that application does not mean that it isn't taxable in the UK. It is taxable in the UK. You can apply to be paid gross if you think that your tax affairs are up to date, that your letting expenses will exceed the rental income or any rental profit will be covered by the personal allowance if you are entitled to one (see below).

You will be entitled to a personal allowance (currently £11,000) to use against your rental income if you meet the criteria in paragraphs 8.12 or 8.13 on page 53 HERE. You are not entitled a UK personal allowance under the UK/Kuwait tax treaty (see page 23 HERE)and there is no such treaty between the UK and Lebanon.

Take a look at Section 1 HERE for the UK tax bands.

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

Customer: replied 6 months ago.
THank you, ***** ***** i understand that i will pay the 20% income tax still? because i dont have expenses in UK to claim? i have living expenses in Kuwait such as my rent my bills, school fees for my children ,,,, etc. regular living expenses
Expert:  TonyTax replied 6 months ago.

You cannot claim your regular living expenses against your UK rental income I'm afraid. You pay tax at 20% on the first £32,000 of taxable income (rental income less expenses less personal allowance if applicable).

Customer: replied 6 months ago.
what would be consider a personal allowance in m y case
Expert:  TonyTax replied 6 months ago.

The UK personal allowance is the amount of income an individual can receive and pay no tax on in any one tax year.

Take a look here and here for information on the types of letting expenses you can claim against rental income.

Expert:  TonyTax replied 6 months ago.

Unless you meet the criteria I gave you a link to earlier, you won't get the personal allowance.

Customer: replied 6 months ago.
Thank you I appreciate your help.
Expert:  TonyTax replied 6 months ago.

Thanks.

Would you mind rating my answer before you leave the site please.

TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15759
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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