Rental income from UK property for non UK resident

Dear all, I am UK resident / tax payer, originally from Poland (Polish national) which leads to my question. I have parents in Poland who are without income and rely on my financial support. With the increased cost of living, it is getting more and more difficult for me. One idea I had was to rent out a bedroom in my (two bedroom) flat - however having done some reading on the topic, I believe the rental income would be taxed at 45% (as I am already in the higher tax band), significantly reducing the extra money that would yield, rendering it not worth the trouble. Is there a way to get the rental agreement signed between UK tenant and my parents (living outside UK, in Poalnd), rent sent directly to non-UK bank account so that the rental income would be taxed at a lower rate in Poland (it would be the only income for my parents) rather than cut by half by UK tax (which in my case would be 45% as I am already in the higher income band thanks to the income from my job) and only then send it to them? To add, the flat is owned by me and have mortgage on it. Kind regards Wojciech

Sorry just a small clarification - I am in the higher tax band which is 40%, not 45%.

Hi,

The income arising from your income from property, if you do rent-a-room, would be chargeable at your appropriate rate of tax.

The tax charge cannot be referred to your parents as they do not own the property. Information concerning rent-a-room can be found hereL

PIM4000 - Rent-a-room

Thank you.

Greetings, I am submitting 2024 Self Assessment Tax Return Form. I am writing to find out for a non-resident Malaysia landlord (under the double tax agreement), what is the rental income after deducting quit rent, service charges, and management fees that are subject to tax? Thank and regards.

Hi ,
 

When you submit your 2023-24 return please include an SA109 residence page & an SA105 property page.  The expenses that you can claim for are on the SA105 notes pages 6 & 7. Thank you .