Tax advice for Overseas Landlords

Where a landlord may be considered non-resident for tax purposes he has 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 Kay & Co to pay rental monies to the landlord without the deduction of tax, Kay & Co 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 fill in. It is important to note that the certificates are non-transferable between agents. It is also important to note that where a landlord is collecting rent directly and is non-resident for tax purposes then the tenant becomes liable for the collection of tax due and Kay & Co are obliged to advise him/her accordingly.