How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4950
Type Your Tax Question Here...
bigduckontax is online now

Taxable income based on renting out a property in Wales,

This answer was rated:

Taxable income based on renting out a property in Wales, while living outside the UK.

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 1 year 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?

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.

Please be so kind as to rate me before you leave the Just Answer site.

bigduckontax and other Tax Specialists are ready to help you

Thank you for your support.