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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 14467
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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My husband and I separated 6 months ago. He owns a property

Customer Question

My husband and I separated 6 months ago. He owns a property in the UK which is rented, and now I also wish to buy a flat in the UK with my own money, and rent it out until I move into it in a couple of years time. My question is this: will the two properties be treated separately by HMRC when we fill in our tax returns (which we will do separately), in view of our marriage break-up? we live in Poland and have a legal separation from a Polish notary. I am a dual British-Polish citizen. Thanks in advance for your advice.
Submitted: 7 months ago.
Category: Tax
Expert:  Sam replied 7 months ago.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Expert:  Sam replied 7 months ago.

HI

Thanks for your patience

From a UK tax point of view, the properties will be treated as you owning one each as in your sole names as

1) the exiting property is in your husbands sole name so has no bearing on you at all

2) the purcahse you plan to make will be treated as solely yours, so you will need to declare rental income for the time you let it out and note in the future when you come to sell it, hen capital gains tax needs to be considered as you had a period of time that you did not live in this property as your main resdience

So as you so not live in the UK you will need to register this property under the non resident landlord scheme so you can have the rents paid to you without deduction of tax, and also will need to complete a self assessment tax return to declare the rental income to HMRC -

If you do not register for the non resident landlord scheme then your tenants or managing agent (if you engage one) will have to deduct 20% tax each month from the rent and pay this over to HMRC - and you still will need to complete a self assessment tax return each year

I provide a link here for you https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-not-self-employed to register for self assessment in due course to register to complete tax returns and also a link here to apply for the non resident landlord scheme https://www.gov.uk/government/collections/non-resident-landlords-forms

Do let me know if you wish me to expand on any of my response

Thanks

Sam