Rental income is liable to tax whether or not the landlord resides in the UK. Tax is levied on rental profit. Mortgage interest, agency charges, furniture depreciation, repairs and maintenance is all taken into account. Landlords are recommended to seek independent tax advice.

Overseas Landlords

Under current legislation, landlords must apply for an exemption certificate to be issued to us permitting us to pay the rent to you gross. Only the Landlord can make the application which, if granted, will be issued directly to the agent. If the property is jointly owned and both owners are overseas, then exemption certificates are required for both owners. Until an exemption certificate is received we are legally required to withhold a percentage of the net rental income as a provision against tax. Tenants paying rent directly to an overseas landlord should still withhold tax. The landlord has a duty of care to make the tenant aware of this.