# UK Tax advice for landlords please



## Mario1973 (Dec 12, 2019)

Hi, last tax year 2018/19 was my wife's first full year as resident in NZ. I filled out her self assessment with HMRC in which her sole income was 3,500 profit from renting out our UK property. I assumed that this would be well under the 12,500 tax free allowance for the UK but she has now received a 500 pound tax bill. Can anyone in the same situation please advise if this is correct? My UK financial advisor has simply sent us a link to the HMRC website which is confusing and I don't want to spend hours on hold with HMRC to dispute it if I don't have to. Many Thanks.


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## escapedtonz (Apr 6, 2012)

I seem to remember we had a a similar issue in our second year here with HMRC charging us income tax on our UK property rental income which we still had for a number of years irrespective that we'd applied and been approved to receive that rental income free of UK income tax....by them!!!
I think I just rang HMRC or sent them a secure email from our personal tax accounts querying the charges and explaining that the 'income' doesn't even come anywhere near the personal tax free earnings allowance so how can they charge us income tax ?
They waived the charges after that query and didn't send us any more bills even though we continued to earn the rental income for a few more years.

I'm not 100% but I think it was something to do with the Resident status and that because we were then Resident in NZ and not the UK you're effectively not eligible to receive a personal tax allowance in the UK as you don't reside there so all money you earn in the UK is due income tax at the emergency rate ?
I didn't have to argue that fact though, they just let us off the fees.


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