Your UK home: let, sell or keep
If you own a home in the UK, you need to decide whether to let it out, sell it or leave it empty. Each has rules to follow.
In 30 seconds
- If you have a mortgage, get your lender’s permission before you let your home
- UK rent is still taxed in the UK, and tax is taken from the rent unless HMRC agrees otherwise
- If you sell while living abroad, you must report the sale to HMRC within 60 days
Letting it out
- Ask your mortgage lender for “consent to let”. Letting on a residential mortgage without it breaks the terms
- Take out landlord insurance
- Register for the Non-Resident Landlord Scheme with HMRC. Your letting agent takes basic-rate tax from the rent unless HMRC approves you to receive it in full (form NRL1i)
- File a UK Self Assessment tax return each year for the rental income
If you don’t use an agent and the rent is over £100 a week, your tenant is responsible for deducting the tax.
Selling
| What to know | |
|---|---|
| Selling before you go | Usually simplest if it has always been your main home |
| Selling after you go | Report the sale to HMRC within 60 days of completion, even if there is no tax to pay or you made a loss |
| Tax relief | The years it was your home can reduce or remove any tax. Get advice on your own figures |
Keeping it empty
Councils can charge extra council tax on empty or second homes. Check with your council. Tell your home insurer too, because many policies have limits on empty homes.
Council tax when it’s let
When the home is let, the tenants usually pay the council tax. Check with your council
What to do next
- Ask your lender about consent to let
- Get quotes from letting agents that manage for overseas landlords
- Register for the Non-Resident Landlord Scheme
Sources
- GOV.UK: rent if you live abroad
- GOV.UK: CGT for non-residents
- GOV.UK: council tax on empty and second homes
- Which?: consent to let