Non resident BTLer tax questions

RDB

This is a question for a friend who doesnt live in the UK but is going to buy at least one rental property.

Does she have to pay tax in the UK on the rent recieved, is there an allowance?

Any useful links?

bluejellyfish

As the income is sourced in the UK it would be liable to UK Tax.

Depending on what country you friend is resident in they are likely to be taxed in that country too.

To relieve double taxation then, you would likely be able to exempt some or all of the other country tax under a double taxation treaty - depends where your freind is resident really.

Cook_County

As this is UK source a treaty will have no effect.

The income is taxable here and subject to UK withholding unless she registers undere the non-resident landlords scheme. There may also be tax in her home country and UK IHT on her death.