Renting out your home in the UK when you live abroad

Renting out your home in the UK is one of the most frequent choices when you move abroad.

It can:

  • provide you income,
  • make sure you have a base to return to
  • and make it easier to obtain further mortgages later on.

Renting out your home privately can be tempting but has some drawbacks

You might wish to cut out the middleman, find tenants and manage the maintenance and rent collection yourself – thus saving agency fees.
The drawback is that dealing with tenants and maintenance issues directly can be stressful and time-consuming. It’s an even bigger hassle if you happen to live in a different time zone.
In addition, when tenants move out, someone must carry out inventories, repairs are done and the return of the deposit negotiated.

Having to manage contractors from a distance is tricky. Furthermore, you couldn’t visit the property itself to check on the tenants and the property.
Most DIY landlords have to pay to use an agent or a website to find a tenant. You’d have to rely on good friends and family living near my property to always help you out with checking the property and organising maintenance.

What is vacant property management?

Renting out your home in the UK: the tax you have to pay

You need to pay tax on your rental income if you are renting out your home in the UK. You may also need to pay tax if you make a gain when you sell residential property in the UK.

If you live abroad for 6 months or more per year, HM Revenue and Customs (HMRC) classifies you as a ‘non-resident landlord, even if you’re a UK resident for tax purposes.

How to avoid tenancy void periods?

How to pay tax 

You can get your rent either:

  • in full and pay tax through Self-Assessment – if HMRC allows you to do this
  • with tax already deducted by your letting agent or tenant

If you get your rent in full

Long distance property rental

Or if you get your rent with tax deducted, your letting agent or tenant will:

  • deduct basic rate tax from your rent (after allowing for any expenses they’ve paid)
  • give you a certificate at the end of the tax year saying how much tax they’ve deducted
  • If you don’t have a letting agent and your tenant pays you more than £100 a week in rent, they’ll deduct the tax from their rent payments to you.

Read more: Tax implications- Residential property management London for expat landlords

What is West London Property Networking

Please contact Pelin Martin to book a 30-minute free property consultation on +0208 994 7327 – pm@bluecrystallondon.co.uk

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