Taxation
The income derived from the profits of letting is taxable like any other income but you can offset many expenses against the rent received before profit is calculated.
For example:
- Noonan Crane Property Management's letting and management fee.
- Insurance premiums for building and contents.
- Maintenance and repairs.
- Mortgage interest.
- Wear and tear allowance.
Noonan Crane Property Management can offer advice and prepares rental accounts on behalf of the landlord for submission to the Inland Revenue for subsequent agreement of any income tax that may be due.
Landlords Residing Abroad
If you go to live or work abroad you are still liable to pay income tax on the profit derived from letting your property in the United Kingdom.
If it is your intention to move abroad for any time apart from holidays, it is imperative that you apply to the Inland Revenue for a Non-Residents Landlords certificate of exemption. Noonan Crane Property Management will supply the application form for this certificate. All of the owners of the property must complete a form.
Noonan Crane Property Management will then forward the application to the Inland Revenue and follow it through until the certificate is issued to us. Until Noonan Crane are in possession of the certificate, we have to deduct tax at the basic rate. This will be held in our client account and remitted to the Inland Revenue on a quarterly basis. The certificate will show from what date rent can be remitted to the landlord without deduction. Any tax retained after that date will be refunded to the landlord. Monies retained before that date will have to be remitted to the Inland Revenue.
This will be ‘credited' to your account with the Inland Revenue until a return is submitted and if tax is found not to be due, money held by the Inland Revenue will be refunded by them to the landlord at the appropriate date. We will supply you with a certificate of tax liability at the end of the year detailing monies forwarded to Inland Revenue. All this can be avoided simply by completing the application at an early date and having Noonan Crane Property Management submit it to the Inland Revenue before the first rents are collected, or before you leave the U.K.
How Our Tax Department Can Help You
We can assist many of their non-resident landlords to minimise their tax liability and our experience in this specialised area enables us to provide an efficient and cost effective service.
