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Comprehensive Tax Return Service for Hong Kong investors who own London property

Clients from Hong Kong who own UK property must complete a personal tax return in the UK. To help them, we provide a specialist service which includes support with UK taxation, including the completion of personal tax returns.

UK property leasing

In the UK, income tax must be paid on net rental income. Certain allowable expenses can be deducted from this income. Landlords must submit a self-assessment tax return to HMRC (His Majesty’s Revenue & Customs) each year, in which they must declare tax payable.

If the property is valued at £500,000 or more, and owned within a corporate structure, it is also necessary to submit an ATED (Annual Tax on Enveloped Dwellings) return. This is necessary even if the property is rented out – and therefore exempt from ATED tax.

The UK’s non-resident landlord scheme

HMRC has a Non-Resident Landlord Scheme, whereby lettings agents must, by law, deduct basic rate tax from net rental income, after deducting allowable expenses, from overseas landlords. This is the case for all non-resident landlords, unless they have received written approval from HMRC.

Individuals, companies, trusts and pension funds are all included in this scheme.

Capital Gains Tax (CGT) in the UK

Overseas landlords must also pay Capital Gains Tax (CGT) when they sell a property in the UK. Landlords must inform HMRC of the sale within 30 days of completion. They must pay any Capital Gains Tax due within this 30 days.

One-stop UK tax return service

Most international investors find it useful to work with a UK-based property specialist like ourselves to ensure they complete all necessary tax documentation, including self-assessment tax returns, ATED and CGT returns.

We can then ensure that tax information is accurate and completed within required timescales so that any tax due is paid on time, avoiding fines for late submission or inaccurate information.

Fees for our Tax Return Service applies, get in touch for a free consultation and quotation.

Benham & Reeves is a lettings and sales agent (Est.1958) offering a comprehensive tax return service to clients. We provide general guidance to overseas landlords on residential property-related tax matters including the most appropriate structure to purchase a property, completion of tax returns and advice on any tax payments required. We also work with third party specialists who act as tax consultants to our client base.

Benham and Reeves are not tax specialists and all information is for general guidance based on UK legislation. It does not constitute a professional advice, nor does it cover commercial property transactions, the use of Trusts or any tax implications in jurisdictions outside of the UK. We recommend clients or anyone using our tax return service obtains specific professional advice regarding their own taxation affairs. In case of discrepancies between the English and Chinese versions, the English version shall apply and prevail.

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