Morning Gents,

My mrs has an ILE visa and she wants to buy a property in the UK and rent it out. Is she able to do this? This would be her only income in the UK and would achieve perhaps 6k a year. Any ideas what the tax implication is?

Cheers

Do you mean that you are buying a property in your wife's name in order to avoid paying tax on the rental income ? Lots of people do, of course. Lots of people also claim non-resident landlord status, and can thus avoid paying the tax legally. I would imagine that HMRC keep a close on eye on things like this. They will check first to see if your wife has an NI number, tax reference, etc. If she is entitled to a personal tax allowance, then the rental income may be below that level. If she has any other income, declared or otherwise, she may be liable to pay tax. If they suspect that the money is yours, then I guess they might investgate further. You could email them and ask ?

Do you mean that you are buying a property in your wife's name in order to avoid paying tax on the rental income ?

No, not at all.

Lots of people also claim non-resident landlord status, and can thus avoid paying the tax legally

Agreed, but we are UK residents.

They will check first to see if your wife has an NI number, tax reference, etc. If she is entitled to a personal tax allowance, then the rental income may be below that level.

She has all of the above and most of her investments are either Thai based or offshore. Zero income in the UK with the exception of, perhaps, interest on a few bonds.

If they suspect that the money is yours, then I guess they might investgate further

No, the money is not mine. All hers and all would be transfered in from outside the UK.

.

You could email them and ask ?

any ideas on a contact email?

thanks

for the tax year 2011/12 you are allowed a personal tax allowance of 7475.00. after that amount you have to start paying tax.

http://www.hmrc.gov.uk/sa/index.htm

Thanks Gents, just as long as she can buy house on her visa then good stuff. Obiviously my crib inThailand is in her name but I'm glad that she can own her own here.

The Mrs just returned from the estate agents. They will also rent it for her and deal on her behalf with the Inland revenue. Job done and all for 10%.

Thanks again fellers.