Classic Sovereign Oceans

Classic Sovereign Oceans is an exclusive management service specifically designed for Landlords who move abroad and have rental property in the United Kingdom. The service includes the comprehensive management service provided by Classic Sovereign as well as the following additional services exclusive to the overseas Landlord:

Low management fees with no added V.A.T

Exclusive use 24 hours a day...

...of the Oceans website www.csoceans.co.uk for Landlords to access all documents and accounts associated with the renting of the property including:

• Inventories
• Inspections
• Tenancy Agreements
• Notices
• Check Out Reports
• Energy Performance Certificates
• Quarterly Accounts
• Additional information/newsletters

The service also provides a messaging service, the ability to change your contact details and a message alert system.

Tax Information for Non Resident Landlords

There is a new scheme for taxing the UK rental income of non-resident landlords which applies to rents and other income of a rental business paid on or after 6 April 1996.

Who are non resident Landlords:

The scheme applies to the UK rental income of persons whose usual place of abode is outside the UK (non-resident landlords). Individuals have a usual place of abode outside the UK if they usually live outside the UK. Individuals will not be regarded as having a usual place of abode outside the UK if they are temporarily living outside the UK for, say, six months or less.

The new scheme and how to apply for approval to receive income with no tax deducted.

If you want to apply to receive your UK rental income with no tax deducted, you can get an application form from Classic Sovereign, or direct from the Financial Intermediaries and Claims Office (FICO) at: HMRC Residency, Unit 367, St John’s House, Merton Road, Liverpool, L75 1BB

Or visit their website:
www.inlandrevenue.gov.uk/cnr/nr_landlords.htm

You can apply on the basis that either your UK tax affairs are up-to-date (you can still get approval to receive your income with no tax deducted it your tax affairs are not up to date, provided you first bring your tax affairs up to date) or you have never had any UK tax obligations or you do not expect to be liable for UK tax.

If you are an individual you may be entitled to personal allowances to set against your income. Leaflet IF138 ‘Living or Retiring Abroad’ tells you about this. You can obtain this from any Tax Office, Tax Enquiry Centre (0345 143 143) or from FICO. You will be liable to UK income tax unless your income after allowable expenses is less than your personal allowances.

When to apply

You can apply any time. If you are going abroad and you intend to let you property while you are out of the UK you can apply before you leave. If you are already non-resident and you intend to let property in the UK, you can apply before you start to let the property.

FICO will approve your application provided that the form is complete and correct, and they are satisfied you will keep to your undertaking to comply with all your tax obligations.

Your application will be dealt with quickly and FICO will normally give approval for payment with no tax deducted straightaway and check the application later.

The application form asks for details of your letting agent. When FICO have approved your application they will tell your letting agent not to deduct tax.

Classic Sovereign have extensive experience of handling the management of properties for non-resident landlords and would be happy to offer advice and assistance on any issues relating to your UK property.