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| TAX FOR UNEARNED INCOME https://mail.paphospeople.com/ppforum/viewtopic.php?f=47&t=5052 |
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| Author: | carole.benson [ Tue Sep 16, 2008 8:04 pm ] |
| Post subject: | TAX FOR UNEARNED INCOME |
Hi can anybody advise me regarding income from renting property in the UK do you pay tax to England or Cyprus I have been told that if you have the money collected via an agent in UK they declare it so you pay tax to England, But if it is paid directly to you and you reside in Cyprus then you pay Tax to Cyprus, does any one know? Thanks Carole |
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| Author: | Judge [ Tue Sep 16, 2008 10:02 pm ] |
| Post subject: | Re: TAX FOR UNEARNED INCOME |
I would imagine it all depends on where you are registered to pay tax doesn't it? As Cyprus and the UK have a double taxation treaty you can't be taxed in both. Chris |
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| Author: | BigDutch [ Wed Sep 17, 2008 8:28 am ] |
| Post subject: | Re: TAX FOR UNEARNED INCOME |
Even if the agent collects and distributes the rental income doesn't mean you will be taxed (by them) at source as long as you complete the relevant documentation ; The Non-resident Landlords Scheme Wherever you tax resident you need to declare your worldwide income and pay the rate in your tax resident country which is where the treaty comes in so that you don't pay twice as you will need to declare your UK sourced funds to HMRC and also to Cyprus. |
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| Author: | carole.benson [ Wed Sep 17, 2008 8:42 am ] |
| Post subject: | Re: TAX FOR UNEARNED INCOME |
Hi, Many thanks for your reply,s I seem to have been ill advised from England, Thanks Carole |
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| Author: | BigDutch [ Wed Sep 17, 2008 9:12 am ] |
| Post subject: | Re: TAX FOR UNEARNED INCOME |
Hi Carole, I`m not sure if the advice you received is bad so much that circumstances can be different for many people. If your UK sourced rental is on a property owned by more than one person that the net income is split between the owners. If you have no other UK income then maybe your split of the rental income will be inside your HMRC personal allowance and they won't expect you to pay any income tax on it, however in your country of tax residency (Cyprus?) you will need to also declare the rental income and if you have other incomes as well then maybe the combination of the rental income and your other incomes will mean that you are paying income tax on a portion of your total income. It may be a sound investment/insurance to consult a tax professional in your country of tax residency ! |
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