Q1113. Indian resident Buying & Renting Property in UK – Tax liability in UK on rental

Question: Dear Sir / Mam Greetings for the day I am an Indian resident and I am interested in Buying a residential property in UK It would be of great help if you could help me answer my following queries

1. Can i buy and put on rent a property in UK
2. If yes is the rental income which i assume should be around 15000 Pounds / year, taxable in UK Looking forward to your valuable inputs Regards

Answer: Yes your rental income from your newly purchased property in India will be taxable in UK. As per UK tax laws, a person who is non-UK domiciled and not resident in the UK will only be liable for UK income tax on any UK source income. Since your rental income will be from your property in UK, the rental income will be taxable.

Paying tax on rental income in UK

Under the Non Resident Landlord Scheme in UK, you may have the option of getting your tenant or rental agent if you have one, to take care of your UK tax liability by deducting the tax portion from rent paid or you could get the full rental payment and pay the tax liability yourself.