Tax query when living abroad

daveb80

Hi,

I am moving to the USA in January but plan to keep my flat here and rent it out via an agency (I will be getting a consent to let from my mortgage lender). It is a permanent move so I was wondering what taxes I would need to continue to pay in the UK if I am just letting out my flat and using that to pay my mortgage?

I will have no other income or outgoings apart from my mortgage.

Sorry if this has been asked before!

pjclar02

Hello there

Presuming you will break UK residency the day you leave for the US, you will then be liable to UK tax on your UK source income only. Therefore, you will be liable to UK tax on your rental profit and any interest on UK bank accounts etc.

You should submit form NRL1 in order to register as a non-resident landlord in order to ensure you receive your rental income gross - otherwise it will be subject to a 20% tax withholding.

You should also submit form P85 to notify HMRC that you are leaving the UK. It is possible also that you will be due a refund of UK tax if you have been employed during the year.

Hope this helps

daveb80

Many thanks Pjclar, that is very helpful. I didn't know about these things so it is great that you gave me this information! Thanks again