Income TAX

Income Tax is payable by the Landlord on income earned through letting Property in the United Kingdom, even where the Landlord is resident abroad and whether or not the Landlord is an individual, an overseas registered company or an overseas resident trust.

The Finance Act 1995 places obligations on agents who handle rental income on behalf of overseas Landlords. When a Landlord is  overseas, there is a responsibility to obtain an Approval Number from HM Revenue and Customs if they are out of the country for more than six months as a total in any one tax year.

If the Landlord does not complete the required form, or HMRC refuses to issue an approval number, then the Agent must hold back a percentage of the landlord’s rental income to hand over to HMRC quarterly on their behalf.