Do I have to pay tax in uk if I'm living abroad?

I got 2 properties one on mortgage & both on rent I was going to go abroad live there off the rent and pay hopefully mortgage should also get covered off the rent. I got no income outside UK. Do I have to pay tax? Also where can I get better advice about this locally? Thanks 👍

2 Answers

  • 8 months ago
    Favourite answer

    General rule of thumb is that you pay tax on income where it is generated.  So that means you are liable for income tax in the UK on rentals in the UK.  Your managing agent is required to withhold 30% of the gross proceeds of your rental income.  You will be able to file a tax return allowing you to claim some of this back at the end of the fiscal year.

    You do not say where you plan to live but the good news is that most countries have a double taxation treaty with the UK which means you do not pay tax twice on the same income. 

    You will need tax advice from a UK accountant on how to file your return.  For example, UK mortgage offset rules are changing.  Starting in 2020 you will no longer be able to deduct any of your mortgage against your rental income, instead you will get a tax credit equal to 20% of the annual amount you pay in interest.  You will still be able to deduct other costs such as maintenance and management fees.

    Living on rental income alone is really tough.  For some reason successive governments have decided that landlords need to be punished.  Tenancies cannot just be ended via a notice of non renewal, there needs to be a cause.  So you will have periods when you have no paying tenant and times when your tenant has trashed the place.  Good luck collecting from a tenant who has destroyed more than the value of his deposit.

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  • 8 months ago

    You will need to submit a tax return under self assessment.  Whether there is tax due is a different matter. 

    Plenty of real life accounts are in the phone book. Go visit one in person with provisional income/ expense figures for best results.

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