Non-resident landlords

If you own a property in the UK and receive rental income as a non resident, you will still have certain responsibilities towards HM Revenue and Customs (HMRC). Our trusted team can help you fulfil all your obligations for being a landlord abroad. Whether you are renting a room, a property/flat for long term let, or running a property business as a Furnished Holiday Let (FHL), our experts can provide you with the best advice and on-going support to minimise your tax bill. Our landlord tax expert can discuss your tax needs over the phone, in our offices or at a place convenient to you. We have multilingual staff who can speak fluent French and Mandarin.

Expenses are deductible from rents only if they are incurred ‘wholly and exclusively’ for the business of letting. This means that if an expense wasn’t incurred for the purpose of your property rental you can’t offset the cost against the rental income. The most common expenses in relation to rental property business are as follows:

  • Agent’s fees and commission

  • Repairs to the property

  • Water charges or council tax

  • Insurance premiums

  • Mortgage interest (Note changes to tax reliefs from 6 April 2017)

  • Costs of services including fees paid to gardeners and cleaners

  • Legal fees for lets of a year or less, or for renewing a lease for less than 50 years

  • Accountant’s fees

  • Ground rents or service charges

  • Direct costs such as phone calls, stationary and advertising for new tenants

  • Vehicle running costs (only the proportion used for rental business)

  • Travel costs for landlords to inspect the rental properties

The following is a list of some expenses which are not allowable:

  • The full amount of mortgage payment – only the interest element is allowable in part or full depending on whether you are a basic, higher or additional rate taxpayer

  • Personal expenses – you can’t claim any expenses which are not incurred wholly and exclusively for the purposes of the rental business.

  • Private telephone calls – you can only claim for the cost of calls relating to letting property

  • Private travel expenses – you can only claim for the cost of travel relating to letting property

Our non-resident landlord tax return services will ensure that you claim all the legitimate expenses to maximise your tax savings.