Under UK legislation, agents are responsible for deducting tax at source from the rent payable to overseas landlords unless steps have been taken to apply to the centre for non-residents to receive rents with no tax deducted. WSM Property will deal with the application for approval so that rents can be paid over gross from the start. We will also deal with the quarterly returns when appropriate.
- Q.
- What happens if a partner or associate is registered as the agent and receives rent on behalf of the overseas investor?
- A.
- The agent will be subject to the quarterly return regime and become responsible for deducting tax at source and accounting for this to HMRC unless, of course, an application has been made to the CNR for rents to be paid gross.