HMRC Admin 20 Response

Hi markinnes74,
You will use the “foreign” section of your tax return to record your overseas income and gains.
You should include income that’s already been taxed abroad to claim Foreign Tax Credit Relief.
The double charge is relieved by deducting the overseas tax paid on the property income from the UK tax due on the same income.
Further information is available at: PIM4702 - Rent from property outside the UK: Income Tax (IT).
You will also receive notes to help you complete the foreign pages when you are sent your Self Assessment tax return.
Thank you.

Hi ASTJW,
The emphasis is the purpose of the loan, not how the loan is secured.  
The capital element is not deductible.
To the extent the loan is used for the rental business, then the loan interest and any loan arrangement fees are allowed as a deduction.
Note that from tax year 2017/18, the tax relief that landlords of residential properties get for finance costs is gradually being restricted to the basic rate of income tax. You will need to calculate your tax relief for finance costs for residential properties differently.
The amount of tax you pay will stay the same unless your total income (without a deduction for the finance costs) exceeds the higher or additional rate threshold.
For guidance, please see:- Tax relief for residential landlords: how it's worked out  
Thank you.

Hi Ella Harriss,
Yes as you are not in a business partnership please follow the guidance at PIM1030. “the share of any profit or loss arising from jointly owned property will normally be the same as the share owned in the property being let.  
But joint owners can agree a different division of profits and losses and so occasionally the share of the profits or losses will be different from the share in the property. The share for tax purposes must be the same as the share actually agreed.”  Please draw up an agreement in writing & keep it in a safe place.  This might need to be sent in as evidence of the split but only if we ask to see this.
Thank you.
 

Hi Brook100,
Yes usually the rental business does not begin until the first property is let.  
Any expenses incurred before the first let must be solely for the rental business and must not be capital expenditure.  
Any qualifying pre-letting expenses are treated as incurred on the day the rental business commences which to confirm is usually the day the property is first let.  
The guidance can be found here:  PIM2505 - Beginning and end of a rental business: commencement
Thank you.





 

Hi Joestankaitis,
You need to be married or in a civil partnership.  
The spit is up to you but yes it can be 0% to one partner & 100% to the other.  
The split also needs to be backed up by a deed of trust.
Thank you.

 

Hi JK_Landlord Kennedy,
An early redemption Fee is not an allowable expenses for either Capital Gains or Rental Income.
Guidance is shown at
BIM45820 - Specific deductions - incidental costs of loan finance: exclusions from relief
and
CG15250 - Expenditure: incidental costs of acquisition and disposal
Thank you.

Hi JK_Landlord Kennedy,
An early redemption Fee is not an allowable expenses for either Capital Gains or Rental Income.
Guidance is shown at:-
BIM45820 - Specific deductions - incidental costs of loan finance: exclusions from relief
and
CG15250 - Expenditure: incidental costs of acquisition and disposal
Thank you.

Hi Bamboozled2023,
I'm assuning you made a disclosure under our Income From Proerty disclosure project.  If so you need to write to the address to which you made that disclosure.
If, however, you are just referring to details submitted on Self Assessment returns you need to write to us quoting your Self Assssment UTR or National Insurance number and specify for whch years you are requesting details.
Thank you.

Hi Spr Purnell,
It does not matter which account any expenses are paid from.  
You should just keep a record of the expenses incurred and keep receipts in case these should be requested at a later date.
Thank you.

Hi Francis Oldfield,
You are correct, whilst outside of the UK, you would apply for the Non-Resident Landlord Scheme if you do not rent out the UK property using a Letting Agent.
In terms of how it would be paid/worked out, you would declare rental income as normal to HMRC through the Self-Assessment platform as the income has arisen in the UK and PAYE in Germany to the German tax authorities.
I would advise for more in-depth advice to contact the NRL helpline directly on +44 300 322 9433 from outside the UK and 0300 322 9433 from the UK as this forum does not specialise in the NRL scheme.
Thank you.