Things to consider as an expat landlord — Hoxton Capital Management
Things to consider as an expat landlord
There are plenty of great buy-to-let opportunities in the UK that many overseas investors are taking advantage of. Capital appreciation in the north of the country is especially strong and the current housing shortage is creating a strong demand for rentals. For many Brits abroad, having a physical property in the UK is also nice from a security perspective. Should they find themselves in a situation that requires them to return home, they have somewhere to go.
However, owning a property comes with responsibility towards tenants, maintaining the building and paying tax on any rental profits.
Tax Rental Income
Any rental income from UK property an expat receives is considered UK income and therefore taxable in the UK. The first £1,000 of rental income is tax free, but expats must file a self-assessment tax return if they earn:
- Between £2,500 and £9,999 after deducting business expenses
- £10,000 or more before deducting expenses
Besides income tax on rents, expats need to be aware of extra taxes if they buy or sell a UK home from overseas.
Originally published at https://hoxtoncapital.com on April 21, 2021.