Non-resident landlord scheme / UK tax resident

steve866

Morning,

I am currently a UK tax resident (higher rate tax payer PAYE) but reside for more than 6 months of the year in Spain. Depending on circumstances, I might have to let my UK home out from 2024. I am looking for some guidance on the tax situation.

From my initial research it appears that even as a UK tax resident, I would be considered as a non-resident landlord even as a UK tax resident:

" This is not defined in law, but in practice HMRC normally regard an absence from the UK of six months or more as meaning a person has a usual place of abode outside the UK. Confusingly, it is therefore possible to be treated as a non-resident landlord for the purposes of the NRLS but in fact be UK resident for tax purposes."

https://www.litrg.org.uk/tax-guides/savers-property-owners-and-other-tax-issues/property-income/non-resident-landlord-scheme

It looks like the letting agent would withhold tax at the basic rate (currently 20%). As a higher rate tax payer, would I then end up paying more when a do my self assessment?

Thanks all

brianposter

As I was once told by an HMRC expert - "HMRC have to be sensible when interpreting legislation".

Why would the letting agent know how long you spend abroad ?

propertyrental

Have I missed something? Where does the OP mention using an agent?


https://www.gov.uk/hmrc-internal-manuals/international-manual/intm370010

steve866

propertyrental said:

Have I missed something? Where does the OP mention using an agent?


https://www.gov.uk/hmrc-internal-manuals/international-manual/intm370010

I did mention using an agent in the last paragraph. Thanks for this link. So it looks like I would then pay the difference via my SA.

thanks 

propertyrental

Sorry. Yes.

You could, of course, apply to HMRC for permission for the agent to pass you the full rent, which you'd then declare and pay tax on in the usual way via SA.

https://www.gov.uk/government/collections/non-resident-landlords-forms