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bigduckontax, Accountant
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I am switching from a residential mortgage to a buy-to let

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Hi,I am switching from a residential mortgage to a buy-to let expat mortgage, due to me living in the UAE.
The loan company RBS International is based on the Isle Of Man.I do not have any income generated in the UK. My only source of income is from the UAE. I transfer the mortgage fee every month from my UK account.
Now that we have tenants, we will register for tax as a landlord and pay the tax on the income of the rent.Should / Can I ask for the RBS Int. to obtain withholding tax relief at source as I will be paying income tax on the rent?Thank you very much

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

When you moved to the UAE did you complete a Form P85 and send it to your tax office?

Customer: replied 3 months ago.
No I didn't
Can I still do that? I have been living and working here since August 2016

Yes, you can, there is no time limit as to the forms submission, it is available on the web and can be filed on line. Be sure to quote your original 2016 departure date. On receipt HMRC will classify you as non resident.

You will still be entitled to a Personal Allowance which will reduce your liability. Also you can claim some of the mortgage interest against tax too. However this relief is being phased out viz:

2017 to 2018 - 75%

2018 to 2019 - 50%

2019 to 2020 - 25%

2020 to 2021 - 10%

Furthermore it only applies to tax at the basic rate, 20%.

You will have to self assess every year unless HMRC tell you not to bother. You could ask RBS to deduct tax if you so desire.

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

bigduckontax and other Tax Specialists are ready to help you

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I think we have covered everything in the phone call.

Thank you for your support.