SELF ASSESSMENT
The Inland Revenue's self-assessment rules changed the treatment of Overseas Landlords Tax with effect from 6th April 1996. Under the Taxation of income from Landlord (Non Residents) Regulations 1995, the rent-receiving agent is required to deduct basic rate Tax from the rent (after taking deductible expense paid out into account) and to pay the Tax to the Revenue each quarter. If you decide not to have your property managed by us, you should be aware that your tenant would be legally responsible for the deduction and payment of tax to the Inland Revenue of the
rent payable.

However, you can apply to the Revenue for exemption from this requirement providing your Tax history is up to date. Once approved a tax exemption certificate will be issued, with a copy sent direct to our management department authorising us to pay rent to you without Tax deductions.

We strongly advise that applications for exemption are submitted as soon as you are aware of your move overseas to ensure rent can be paid gross.

THE ALTERNATIVE
We deduct Tax at the relevant rate at that time from all rents paid, after deduction of certain expenses and then account for this tax to the Inland Revenue. We also have to submit annual returns providing information about the details of your property, the gross rent paid, the tax deducted etc. We will in turn provide you with a tax certificate for use when preparing your own Tax Return.

FURTHER INFORMATION
We have copies of Inland Revenue Tax Guides and application forms available on request. If you would like to speak to somebody in person regarding this matter, please call the Inland Revenue's Financial Intermediaries and Claims Office (FICO) on 0151 472 6208/6209.