Non-resident landlords

If you have rental property (commercial or residential) in the UK but your usual home is outside the UK (basically non- residents) then the Non-Resident Landlord Scheme (NRLS) will apply. 
 
We are currently undertaking tax due diligence work in respect of refinancing arrangements between third party lenders and non-resident landlords. The lenders are becoming increasingly concerned with the UK tax position of the non-resident landlords, and wish to minimise the risks to which they would be exposed if unexpected tax liabilities led the landlord to default on the loan. Hidden tax liabilities could arise if, for example, the transfer pricing provisions have not been adequately considered. Another area of concern is whether the interest charged on the finance might be held to have a UK source, giving rise to withholding tax liabilities.
 
We can also assist you with the following matters from a UK tax perspective:
 
  • registration under the NRLS to maximise cash flow advantage;
  • completion of the annual Income Tax Return including consideration of transfer pricing and capital allowance matters;
  • assistance with payment of appropriate income tax liabilities;
  • due diligence work on the proposed acquisition of existing overseas structures for investment properties in the UK;
  • tax planning to ensure the most appropriate structure is in place for investment properties in the UK including consideration of the new tax charges on high-value residential property;
  • completion of the annual ATED Return in order to claim exemption from the charge;
  • advising on Construction Industry Scheme (CIS) matters when the landlord is deemed to be a contractor under the CIS;
  • advice for agents/tenants regarding their obligations under the NRLS.
For more information or to arrange an initial meeting please contact one of our tax specialists

For more information on non-resident landlords, please contact your nearest Moore Stephens personal tax adviser.