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Taxation
The income derived from the profits of letting is taxable like any other income but you will be agreeably surprised by how many expenses you can offset against the rent received before the profit is calculated. For example:
Covehome Property Management can offer advice and prepares
rental accounts on behalf of the landlord for submission to the Inland
Revenue for subsequent agreement of any income tax that may be due.
Top of the Page :: Landlords Residing Abroad If it is your intention to move abroad for any time apart from holidays, it is imperative that you apply to the Inland Revenue for a Non-Residents Landlords certificate of exemption. Covehome Property Management will supply the application form for this certificate, all of the owners of the property must complete a form. Covehome Property Management will then forward the application to the Inland Revenue and follow it through until the certificate is issued to us. Until Covehome are in possession of the certificate, we have to retain 22% of the net rent. This will be held in our client account and remitted to the Inland Revenue on a quarterly basis. The certificate will show from what date rent can be remitted to the landlord without deduction. Any tax retained after that date will be refunded to the landlord. Monies retained before that date will have to be remitted to the Inland Revenue. This will be ‘credited’ to your account with the Inland Revenue until a return is submitted and if tax is found not to be due, money held by the Inland Revenue will be refunded by them to the landlord at the appropriate date. We will supply you with a certificate of tax liability at the end of the year detailing monies forwarded to Inland Revenue. All this can be avoided simply by completing the application at an early date and having Covehome Property Management submit it to the Inland Revenue before the first rents are collected, or before you leave the U.K. :: How Our Tax Department Can Help You |
