Mariana Calderon
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Tax implications during sabbatical period abroad
My husband and I are both UK citizens and are going on sabbatical to live in Mexico from the end of December to mid-August. He will be staying for just over 6 months and I will be staying for 7 and a half months. We will not be working at all during this period. We want to rent our house and this will be the only income that we will receive during this period. Do we need to tell HMRC? What are the tax implications for this? We also receive child tax benefit at the moment. How does that fit into all of it? I was told by the estate agent that we could fill in a NLR1 form so that we don't have to pay tax on the income from the property. I just want to make sure I have an accurate picture of our liabilities and that we fill in what is appropriate in these circumstances.