Taxing of uk rental income

This topic contains 2 replies, has 2 voices, and was last updated by  Anonymous 13 years, 5 months ago.

  • Author
  • #51524


    Hi Learned group,
    I have enjoyed learning from the excellent info availiable from this group, and now I need to know a few answers to personal questions:-

    I hope you will bear with me and give me the experience of your knowledge.

    The scenario.

    My wife works for a large multinational and the opportunity has arisen for her to move to Valencia on secondment. Obviously as the hubby I am expected to up sticks too (which i am happy to do).

    My personal position is I will earn from several rented properties in the Uk about £2,900 pcm. I love Spain and I would love to live there.

    Is it better to return to uk periodically to maintain residence in uk so i pay my tax as usual to Gordon Brown, maintaining my health rights (NHS) and being a uk citizen who spends time abroad. (I am 38 years old)

    Or Should I become resident in Spain pay spanish taxes and go private with my health care.

    I would like the most tax efficient route as I would be living on my “Pension fund” so to speak!

    Anybody in a similar position out there?

    Thanks in advance

    El Gamberro

  • #60727


    On UK rental income you have no choice but to continue paying tax to the Inland Revenue. This is one of the few exceptions to the rule about paying tax where you are a “tax resident”.
    You need to declare yourself an a “non-resident landlord” (NRL) to be able to receive your rent gross. Otherwise your tenant(s) have to deduct the tax and pay it on your behalf.
    The IR website tells you all the info you need to know and which forms you need to complete to receive your rent gross.
    Then you have to complete a self-assessment tax return annually as normal.

  • #60783


    Thanks Mrs C,
    If I have to declare my tax resident status ie live abroad but pay to UK gov, How does this affect my health cover? am I still covered? as I am paying for it.

    Thanks in advance

    El Gamberro

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