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Sam, Accountant
Category: Tax
Satisfied Customers: 7991
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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UK tax resident with a property in the UK with a mortgage

Customer Question

I am Non uK tax resident with a property in the UK with a mortgage that was previously provided by NatWest isle of Mann but which has nor been transferred to Jersey. My income arises in Fermany and Switzerland but I currently pay interest via a UK account. Am I subject to withholding tax? Should I ask NatWest to apply for an expemption? Does it make a difference if I oay interest directly from Switzerland or Germany?
Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: Nope
Submitted: 9 months ago.
Category: Tax
Expert:  bigduckontax replied 9 months ago.

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

I am sorry but your question is a trifle confusing. You own an UK property but appear to be paying interest on a mortgage, is that correct?

Customer: replied 9 months ago.
My partner lives there. I am in the UK under 90 days per year and am a taxpayer in Germany and Switzerland where I work nd have my work contracts (with a German-based group). No work activities in the UK.
Expert:  bigduckontax replied 9 months ago.

Then what is the withholding tax to which you refer?

Customer: replied 9 months ago.
I have been informed by NatWest that they have transferred my mortgage to Jersey and that UK sourced interest income paid to Jersey may be subject to withholding tax
Expert:  bigduckontax replied 9 months ago.

I am so sorry, but I still do not understand how does the mortgage pay you an income?

Customer: replied 9 months ago.
The house is subject to a mortgage which I took out with Nat West. My non resident status fully dicslosed. The mortgage is around GBP 600K repayable over 11 years. I have paid interest and principle for the last 2 years to Nat West UK. the mortgage is now being transferred to Nat West Jersey and I have been informed that interest payments to the bank may be subject to Withholding tax. I need to know whether this would be the case or not. As I stated I am non resident in the Uk for tax purposes.
Expert:  bigduckontax replied 9 months ago.

Sorry, this sounds like complete gibberish to me. How can your payments to Natwest be subject to a withholding tax and who is going to withhold it?