Overseas Landlords: A Complete Guide

If you live outside of the UK, but own and let property in the UK, you are an overseas landlord. As an overseas landlord, there are regulations that apply to how you pay tax.

For this week’s Top Tip Tuesday, we are sharing the current regulations that overseas landlords must comply with.

Boxall Brown & Jones top tips for landlords who are living overseas

  1. One certificate is required per person. Therefore, if Mr and Mrs, or several landlords, all parties must apply for an individual certificate.
  2. If changes in circumstances occur during the tenancy, the agent must receive written confirmation of the change and the date the change occurred.
  3. C/O addresses will always be handled as overseas landlords and tax will be deducted until a completed and signed declaration of residence status is received by the agent. The Inland Revenue are very strict with regards to this matter.
  4. Should a friend or relative by looking after affairs whilst the landlord is abroad, an Enduring Power of Attorney document will need to be made available to the agent.
  5. Should a professional person (accountant, tax advisor or solicitor) be looking after the affairs for the landlord, the agent will require written authority from the landlord to allow information to be released to that person.
  6. Landlords who spend part time abroad and part time in the UK over the course of the year will need to apply to join the non-resident landlord scheme using NRL1.
  7. The scheme does not apply to the Armed Forces and other crown servants. If a member of the Armed Forces or other crown servant had approval pre-1996 they will need to re-apply to join the non-resident landlord scheme using NRL1.
  8. Some confusion often reigns with the following localities, Isle of Wight and Northern Ireland. These landlords are NOT classed as overseas. Southern Ireland (Eire), the Channel Islands and the Isle of Man ARE classed as overseas.
  9. Should a landlord choose not to use an agent for the letting of a property whilst abroad, the liability for collection of tax, in the event that non-resident status has not been sought, passes to the tenant.

Did this guide help? Why not check out our vast range of property guides by clicking here.

Looking for Commercial Property? Meet the specialists...