Tax Implications for landlords
You will be liable to pay income tax on your net income from the property, which is the gross income less allowable expenses, which are incurred in letting the property.
Below are a few expenses that you are able to offset against the profit:
* Gatehouse Estates Property Management Commissions plus any set up fees
* Maintenance and Repair
* Mortgage Interest
* Building and Insurance Premiums
* Property Wear and Tear Allowance
If you live abroad permanently or are working abroad for an extended period you will still normally be required to pay income tax on the net income from any property letting.
There are some additional obligations on the part of the letting agent with respect to overseas landlords which you should be aware of. We are required to withhold a proportion of rental income (equivalent to the basic rate of tax) and pay this directly to the Inland Revenue unless we receive specific written exemption from the Inland Revenue not to do so.
We are able to provide you with the appropriate documentation to apply to the Inland Revenue for this exemption, thus allowing us to pay you rent without deduction of tax. The granting of exemption to withholding tax is at the discretion of the Inland Revenue and is likely to be withdrawn if you are subsequently delinquent in making the appropriate tax returns.