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As your global property partner, Benham and Reeves provide a complete service, including help with UK tax matters. We specialise in preparing personal UK tax returns for our Indian clients.
Tax for letting a property in the UK
UK income tax is charged on the net rental income after deducting allowable expenses. Landlords must submit an annual self-assessment tax return to HM Revenue & Customs (HMRC) to report any tax owed. If your property is valued over £500,000 and held in a corporate structure, an Annual Tax on Enveloped Dwellings (ATED) return is also required, even if you are exempt from paying the ATED tax because the property is rented.
UK non-resident landlord scheme (NRLS)
Under the HMRC non-Resident Landlord Scheme (NRLS), letting agents are legally required to withhold basic-rate UK income tax from net rental income (after allowable expenses) for overseas landlords unless written approval is granted by HMRC. This applies to all non-resident landlords, including individuals, companies, pension funds, and trusts.
UK capital gains tax (CGT)
Since April 2015, overseas landlords must pay capital gains tax when selling UK property. The sale must be reported to HMRC within 30 days of completion, and if the seller doesn’t have a previous relationship with HMRC, any tax owed must be paid at that time.
Taxation service
We can help prepare annual accounts, complete self-assessment tax returns, ATED and CGT returns, and provide advice on any payments that need to be made.
*Disclaimer -
Benham and Reeves, established in 1958, is a lettings and sales agent that also offers a tax return service for clients. We provide general guidance to overseas landlords on residential property tax matters, including advice on the best structure for property purchases, completing tax returns, and understanding any required tax payments. We also collaborate with third-party tax consultants who provide specialist advice to our clients.
Please note, Benham and Reeves are not tax experts, and the information we provide is for general guidance based on UK laws. It does not replace professional advice and does not cover commercial property transactions, Trusts, or tax issues outside of the UK. We strongly recommend that clients or anyone using our tax return service seek specific professional advice tailored to their personal tax situation.
Frequently asked questions
Yes, if they earn rental income from a UK property, it is crucial to file an annual self-assessment tax return with HMRC. As an overseas investor, if this process seems complex, you can sit back and relax. Benham & Reeves specialises in assisting Indian investors with tax returns in the UK and claiming allowable deductions.
All allowable expenses are deductible from rental income. This includes mortgage interest, service charges, repairs, letting agent fees and insurance. If you’d like assistance with this, reach out to our tax experts. They will ensure you only pay the right amount of UK income tax.
Under the HMRC non-resident landlord scheme, tax is to be deducted at source from rental income, until and unless you have approval to receive it gross. We can guide you through the approval process and ensure you receive rent without unnecessary deductions.
Yes, since 2015, overseas landlords are required to report and pay capital gains tax (CGT) when selling UK property. They are needed to file a CGT return within 30 days of sale.
You are required to file an ATED return if your UK property is worth over £500,000 and owned through a company. Even if no tax amount is due, filing is mandatory. To avoid paying any sort of penalties on ATED, connect with our experts today.
Think of us as your tax partner in the UK. We offer assistance with annual accounts, self-assessment tax returns, CGT and ATED filings. Our experts will ensure compliance while maximising tax efficiency.
