Tax advice for overseas landlords

Landlords considered to be non-residents for tax purposes have to pay United Kingdom Income Tax on any rents received from property in the UK under the Finance Act 1995. Unless an “Exemption Certificate” is received from the Inland Revenue specifically permitting Home Minders to pay rental monies to the landlord without the deduction of tax, Home Minders is obliged by law to deduct tax at the appropriate rate as directed by HM Treasury on all monies received and account to the Inland Revenue for these monies on a quarterly basis.

Whilst landlords are responsible for obtaining their own “Exemption Certificate”, we can advise you of how to go about it and supply you with the relevant forms to complete. It is important to note that the certificates are non-transferable between agents.

In practice, this means that if you change managing agents or have more than one, each agent will require a separate exemption. Without this, each agent must withhold tax on the rent they collect, potentially reducing your rental income unnecessarily. To avoid delays or deductions, we recommend starting the application process as soon as you know you will be letting your property from overseas. Our team is always on hand to guide you through the process and ensure you remain compliant with HMRC requirements.