Income Tax Act 2007 section 971

Income tax due in respect of income of non-resident landlords

Section 971 gives HMRC the power to make regulations for collecting income tax on UK property income earned by landlords who live outside the United Kingdom, using representatives based in the UK as the collection mechanism.

• HMRC can make regulations requiring prescribed representatives of non-resident landlords to account for income tax on UK rental income, calculated at the basic rate
• Non-resident landlord income means UK property business profits belonging to a person whose usual place of abode is outside the UK, regardless of whether any payment is actually made to the landlord
• A non-resident landlord representative is either someone who pays rent or other sums to the non-resident, or someone who manages or administers the UK property business on the non-resident's behalf
• Representatives who pay tax under these regulations are entitled to be reimbursed by the non-resident landlord, and may withhold sufficient sums from money they hold or owe to cover the tax, whether the liability has already been paid or is still outstanding