Buy to let tax

mac1966_2

I bought a buy to let property in the UK where the annual rent is 9,000 a year.


I have no other income and now live in Thailand. My wife does have a business income.


I understand that the basic rate tax is 20% but that income over 10,600 is taxable.


Should i inform the Inland Revenue about my buy to let, and if so, should i be taxed and how much.


I want to sort this out as i do not want a fine when i come back to the UK


Any help appreciated

G_M

Yes, you need to declare the rental income to HMRC. You may or may not have to pay tax.

Who do the tenants pay rent to? You/your bank? or someone in the UK (agent? relative?). If rent is paid direct to an overseas landlord, the tenant should deduct tax! Read:

HMRC (Non Resident [= overseas] Landlord Scheme)

Do the tenants have an address in England/Wales for serving notices on you? If not, they do not have topay rent. See:

Landlord and Tenant Act 1987

For tax information, see

HMRC (Property taxes eg Income Tax on rent (and allowable expenses to offset tax); Capital Gains Tax, etc)

Now read:

* New landlords: advice, information & links

Old_Git

mac1966 wrote: »

I bought a buy to let property in the UK where the annual rent is 9,000 a year.


I have no other income and now live in Thailand. My wife does have a business income.


I understand that the basic rate tax is 20% but that income over 10,600 is taxable.


Should i inform the Inland Revenue about my buy to let, and if so, should i be taxed and how much.


I want to sort this out as i do not want a fine when i come back to the UK


Any help appreciated

yes you tell then about the the BTL .how much tax you pay will be up to the inland revenue .Who looks after it when you are away.

mac1966_2

thanks for the replies.........my parents manage the place in the UK

G_M

mac1966 wrote: »

thanks for the replies.........my parents manage the place in the UK

so
a) the tenants pay their rent to your parents?
b) you have given the tenants, in writing, your parents address to the tenants "for the serving of notices"?

theartfullodger

mac1966 wrote: »

I bought a buy to let property in the UK where the annual rent is 9,000 a year.

I have no other income and now live in Thailand.

You really have no other income - including no interest from savings or shares or other assets, no eBay sales, no other business ventures??

mac1966_2

a) the tenants pay their rent to your parents?yes
b) you have given the tenants, in writing, your parents address to the tenants "for the serving of notices"?no but thanks for the advice. i will do that now

You really have no other income - including no interest from savings or shares or other assets, no eBay sales, no other business ventures?? no, my wife is the bread winner

G_M

mac1966 wrote: »

You really have no other income - including no interest from savings or shares or other assets, no eBay sales, no other business ventures?? no, my wife is the bread winner

She does't have an unmarried younger sister by any chance?

mac1966_2

Do you know how much monthly tax i would pay for a rent of 9,000 a year being a 20% tax payer?

TrickyDicky101

Assuming you will still have your Personal Allowance which exceeds £9k, then you won't pay any tax.

If you have interest charges on any lending you have against the property this can reduce your tax liability also (including any maintenance/repair costs).

caronoel

Your tax considerations:
https://www.gov.uk/tax-uk-income-live-abroad/rent