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Old 17.07.2013, 17:52
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Re: UK property investment - tax questions

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Linky linky link. As CH resident, CH tax law applies here. Not Uk.

I have been paying Swiss taxes and not Uk taxes as an overseas resident for years on my propery, having signed a declaration. So where does that leave you?

Afaik (and my tax firm too), I am liable for taxes on all income and/or investments and assests globally. The Swiss don't do "off-shore". You are missing the point of the original question(s), the answers to which are: you don't pay tax on uk property in the uk, but rather are liable for tax in CH.
Where does that leave me? A tax lawyer, who writes law review articles, peer reviewed, on this sort of thing.

It is irrelevant what you do. In virtually every OECD country you pay tax on income from real property in the situs jurisdiction(s) (i.e. country & province/state where the rented property is located) then you declare the revenue and the tax you paid to the country/state where you live.

You don't like links perhaps, but I linked to the tax treaty, supreme law of the land.

Probably you've slipped under the radar. Not a good idea to publish that on a public form where some bounty hunter could find you and turn you in for a reward.

And your tenants and/or agent in the UK could be hit for the 25% withholding tax too.

I happen to be Swiss but have lived in the UK for decades and, lately, partly in Switzerland. I feel taxed to death but (as Esther Rantzen used to say) That's Life.

(To say the Swiss don't do "off shore" is meaningless: as it happens they do, with lump sum taxation, and there are other anomalies. But never mind.)
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  #22  
Old 17.07.2013, 20:05
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Re: UK property investment - tax questions

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A foreign owner who lets out his property in the UK will, as I've said in an earlier posting on this thread, have 25% of the gross rent deducted before funds are remitted to him, her or it. That 25% can be reclaimed on Form SA105
http://www.hmrc.gov.uk/forms/sa105.pdf
http://www.hmrc.gov.uk/worksheets/sa105-notes.pdf

The 25% withholding can be avoided if the owner appoints an agent within the UK who can be assessed for tax instead. When I did it, this was done by exchange of letters.

Lots of renting agents don't withhold the 25%, presumably because they are unaware that they take the risk of having HMRC pursue them if a declaration is not made and tax paid.
I'd like to mention that you can fill in a form NRL1 to have your rental payments from a UK property paid gross. I'm not an expert (only an amateur letting our property in the UK) but I don't think this was clear from all the posts on this thread so far. This is helpful if you do not expect to receive much (or any) taxable profit from the letting. You then have to submit a UK tax return each year declaring your profits or losses and paying any tax due. Link to the form below.

NRL1 - http://www.hmrc.gov.uk/cnr/nrl1.pdf
About this form
You can use this form to apply to get your UK rental income paid without deduction of UK tax, if you:
• are an individual landlord of UK property, and
• normally live outside the UK.
Joint applicants, for example husband and wife, must complete separate forms.
Normally a letting agent or tenant deducts tax when paying rent to a landlord who usually lives outside the UK. This doesn’t mean that the rent is exempt from UK tax, and we may ask you to fill in a UK Self Assessment tax return later.
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