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Landlord: offshore company?

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AmandaLC
AmandaLC Posts: 9 Forumite
edited 13 July 2018 at 12:24AM in House buying, renting & selling
Hello all,

I'm in the process of renting a property, the landlord as such is an offshore company and the letting agent manages the property... I know this is not unlawful but somehow this looks like I could be trapped if something goes wrong.

Just to clarify: the letting agent name is in the contract as acting in behalf of the landlord

Could I ask the letting agent to sign a contract where they can be legally liable or at least to include a clause in the AST where they will need to let me know in advance if they are no longer managing the property? what are the obligations of a letting agency managing a property during the tenancy? does that need to be reflected in the AST?

Thanks!!
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  • 00ec25
    00ec25 Posts: 9,123 Forumite
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    the clue is in the name: "agent".
    They are the landlord's agent.
    They do not work for you, they do not work for themselves, they work FOR the landlord and do what he asks them to do. You are nothing to them.
  • zagubov
    zagubov Posts: 17,886 Forumite
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    AmandaLC wrote: »
    Hello all,

    I'm in the process of renting a property, the landlord as such is an offshore company and the letting agent manages the property... I know this is not unlawful but somehow this looks like I could be trapped if something goes wrong.

    Could I ask the letting agent to sign a contract where they can be legally liable or at least to include a clause in the AST where they will need to let me know in advance if they are no longer managing the property? what are the obligations of a letting agency managing a property during the tenancy? does that need to be reflected in the AST?

    Thanks!!

    Don't rush into this. It could be complicated as in you could have to pay the tax on your rent to HMRC. Other posters will be along soon with more info.
    There is no honour to be had in not knowing a thing that can be known - Danny Baker
  • AmandaLC
    AmandaLC Posts: 9 Forumite
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    Thanks for the answers! 'll pay everything directly to the letting agency in a UK bank account so I assume that's something to take into consideration?
  • System
    System Posts: 178,094 Community Admin
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    zagubov wrote: »
    It could be complicated as in you could have to pay the tax on your rent to HMRC.


    Rubbish, any tax owed by the landlord to HMRC is payable by the landlord, as you are dealing with a UK based letting agent your rights as a tenant with an Assured Shorthold Tenancy are protected under UK law, it doesn't matter who the landlord is or where they are based
  • eddddy
    eddddy Posts: 16,441 Forumite
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    Simonr66 wrote: »
    Rubbish, any tax owed by the landlord to HMRC is payable by the landlord, as you are dealing with a UK based letting agent your rights as a tenant with an Assured Shorthold Tenancy are protected under UK law, it doesn't matter who the landlord is or where they are based

    I guess the point being made is that the LL currently has a UK based letting agent - so the agent will deduct tax from the rent and pay hmrc.

    ...But should the LL decide to sack the agent and deal direct with the tenant - the tenant will have the hassle of deducting tax and paying it to hmrc.

    (But I agree that's a bit unlikely.)
    If your landlord lives abroad and you pay over £100 a week, you need to register with HMRC and deduct tax from your rent.

    You also need to register with HMRC if you pay a UK representative of your landlord, such as a friend or family member, who isn't a letting agent.

    https://www.gov.uk/guidance/paying-tax-on-rent-to-landlords-abroad
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    edited 13 July 2018 at 3:25PM
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    Simonr66 wrote: »
    Rubbish, any tax owed by the landlord to HMRC is payable by the landlord, as you are dealing with a UK based letting agent your rights as a tenant with an Assured Shorthold Tenancy are protected under [STRIKE]UK[/STRIKE] English law, it doesn't matter who the landlord is or where they are based

    A small but important difference.

    That's not true about the tax. For non-resident landlords it's the letting agency or tenant who has to register with HMRC and pay the tax. Strange but true. However, in the OP's case because there is a letting agency then as long as the OP's rent payments go to the letting agent then it's the agent who is liable for deducting the tax and paying it to HMRC.

    https://www.gov.uk/guidance/paying-tax-on-rent-to-landlords-abroad
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    AmandaLC wrote: »

    Could I ask the letting agent to sign a contract where they can be legally liable or at least to include a clause in the AST where they will need to let me know in advance if they are no longer managing the property? what are the obligations of a letting agency managing a property during the tenancy? does that need to be reflected in the AST?

    Thanks!!

    You can ask but since the contract is between you and the landlord not you and the letting agent then I highly doubt they will agree. If the landlord ditches the letting agent then the landlord will soon tell you about it because he won't want you paying the rent money to a company he no longer has a contract with.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
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    edited 13 July 2018 at 6:56PM
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    Simonr66 wrote: »
    Rubbish, any tax owed by the landlord to HMRC is payable by the landlord, as you are dealing with a UK based letting agent your rights as a tenant with an Assured Shorthold Tenancy are protected under UK law, it doesn't matter who the landlord is or where they are based
    had you put some caveats into your comment such that it was clear you know about the Non Resident LL scheme and the relationship between that and having an agent, your post would have been credible

    however, as written, it is a sweeping comment so devoid of true context as to be rubbish itself.

    shall we start again?
    Simonr66 wrote: »
    [STRIKE]Rubbish,[/STRIKE] any tax owed by the landlord to HMRC is payable by the landlord, correct in certain circumstances. A big exception being where the LL is non resident in the UK and has not been given permission by HMRC to operate the NRL and furthermore the LL has not appointed an agent with an address in the UK to handle his affairs for him. In the latter case the tenant is legally liable to pay the tax to HMRC by means of deducting it from the rent he pays to the LL. Failure of the tenant to pay HMRC means HMRC will chase the tenant for the tax

    as you are dealing with a UK based letting agent your rights as a tenant with an Assured Shorthold Tenancy are protected under UK law, incorrect. there is no "UK" law, Housing law has variation between England, Wales (some differences) Scotland, (radical differences) and if one incorrectly includes NI as part of the UK, then there are also differences over there.

    it doesn't matter who the landlord is or where they are based yes it does for tax purposes, but you are correct the location of the LL has no bearing on which housing law applies to the tenancy itself, as that is dictated by where the rental property is located, not where the LL is located.
  • G_M
    G_M Posts: 51,977 Forumite
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    Thank goodness there are so many knowledgeable people here who can correct the drivel spouted by the unknowlegeable!
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    edited 13 July 2018 at 7:14PM
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    Northern Ireland is in the UK, as in the United Kingdom of Great Britain and Northern Ireland. It's why the Cross of Saint Patrick remains part of the Union flag.
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