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Taxable income based on renting out a property in Wales,

Resolved Question:

Taxable income based on renting out a property in Wales, while living outside the UK.
Submitted: 9 months ago.
Category: Tax
Expert:  bigduckontax replied 9 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Rental income is taxable in the UK irrespective of the owner's residence and tax status. Providing the owner is a citizen of the EEA then they have the usual personal allowance, currently 11K, to offset this income.

This income may, in addition, be liable for taxation in the country in which they reside. Providing that country has a Double taxation Treaty with the UK then any tax paid in the UK will be allowed as a tax credit against the liability in the other.

I do hope that you have found my reply of assistance.

Customer: replied 9 months ago.
Thanks for your reply. I asked whether you would advise me to complete and return the HMRC self-assessment tax forms for the last financial year, even though I appear to have missed the relevant deadline (and may have to pay a fine) for that. Do I have any alternative?
Expert:  bigduckontax replied 9 months ago.

I would advise you to complete the return. If you voluntarily disclose your earnings and explain your position living overseas, you may well find HMRC lenient regarding penalties particularly if there has been no or minimal loss of revenue. You will, of course, have to pay interest on unpaid tax, but that is reasonable when you considered HMRC themselves pay interest on refunding over paid taxes.

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Expert:  bigduckontax replied 9 months ago.

Thank you for your support.

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