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bigduckontax, Accountant
Category: Tax
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-Madame, my civil partner and I live in italy, and

Customer Question

Dear Sir-Madame,
my civil partner and I live in italy, and this is our issue with HMRC.. we have a small property in the uk, in Cardiff, with a monthly gross rental of 450 pounds, (we have a ownership 50% each), now both of us have sent more than a month ago to HMRC a NRL1 form (one each) for Tax exemption, we believe we are both entitled to it as he is uk citizen and I am italian citizen living in the EU (Italy). The situation evolved in that my civil partner (uk citizen) got the tax exemption (the notice was sent to our estate agent) while I am not sure whether it is taking more time because I am italian or what.
After saying all the above, here is the question: I am I as a Italian landlord, living outside of the uk, italy, I believe I am entitled to such tax exemption, I am I right or wrong? What is the next action we may need to do? Any adivce?
Thank you in advance,
Thanks in advance.
Kind regards,
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello Bruno, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
Your rental income is taxable in the UK, but at an annual rental of GBP 2700 you are well below the Personal Allowance of tax free income (GBP 11600) to which all EEA citizens are entitled.
As your income is above the GBP 2500 limit you are required to make an annual self assessment return to HMRC, but I am pretty sure that once they know your exact position after they have received your first return they will probably not require you to make returns thereafter. Even HMRC do not wash to have to bother witch processing returns which yield no revenue.
I do hope that I have set your mind at rest on this matter.
Customer: replied 2 years ago.

Thanks Keith for the fast reply.

To be more precise the monthly rental is 450 pounds (to be divided in 2), however we pay a 10% plus vat commission to our estate agent in Cardiff, equal to punds 49.5 per month) so our monthly earning is 400.5 , divided by 2 is 200.25 and that makes only 2403 per year, so it is below 2500 pounds: for this reaason according to your answer above there is no need to make an annual assessment return, if that is the case do we get this money back and when is the right time to claim them back? thanks in advance.


Expert:  bigduckontax replied 2 years ago.
Correct, but to get your money back you would have to self assess! It would be a good idea to contact your tax office in the UK in writing with a view to interim refunds of the tax deducted as the year progresses. You could also get your tax office to advise the estate agent that income tax need not be deducted from rentals. That would save a lot of unnecessary palaver. So it is down to letter writing by you.
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