Moved Abroad Renting House in England. Too Much Tax??

lillylita

I recently moved abroad with my partner and to my horror I have discovered that I am paying 20% tax on the rent each month because I have moved abroad, to Canada!! Now our income does not even come close to covering the mortgage at all! It was bad enough with just the tenants payments each week...which we have barely received because the estate agents have taken their 'management fees' upfront, but now I think there is nothing for it but to move back to England. I am not working, because I have just had a baby but my partner is, in fact, we moved here because of his job. Please help. We are desperate. Any advice would be greatly appreciated. My partner is paying 40% tax on his wages here so we are at the stage where we can't even afford groceries each week!! Should we get in touch with the Inland Revenue so they can assess our situation?....Hope to hear from someone soon...
Thanks for reading...
Lillylita

missile

You really ought to have done a little more research before you left. There are several threads on here if you search. FYI > http://www.nidirect.gov.uk/index/money-tax-and-benefits/taxes/tax-on-property-and-rental-income/tax-on-overseas-property-lettings.htm

Jowo_2

Landlordzone is a great source of information and they have both a section on taxation on their website and a forum for tax questions where some of their members are professional tax advisors.

How long is the fixed term of the contract? You cannot make a paying tenant leave earlier unless they wish to.

Oldernotwiser

Did you really think that you could receive income tax free?

stmatt

Hi

Have you filled in a tax return? I was in a similar position i.e. living abroad, husband high income earner, me stay at home mum. I didn't have to pay any tax as this was my sole income. Things like management fees, repairs and mortgage interest can be deducted as expenses.

theartfullodger

I'm sure all the other posters on MSE pay their taxes: I do. Is it not the decent thing to pay your tax?? Can't quite see why on earth you would have expected not to pay tax..I'm sure that in all other respects you are & would be law-abiding???

Have a look here..
http://www.hmrc.gov.uk/CNR/nr_landlords.htm
for how the scheme works...

Cheers!

Lodger (LL since 2000, all income declared, accounted for and taxed...)

PS Memo to self: I must try not to sound so smug..