Bubblegun wrote: ↑Tue Jul 16, 2024 1:14 pm
Sorry to jump in here.
UK landlord too.I had to rent out my house and change it when I was in Japan to a buy-to-let mortgage.
So how do I do this exactly.
Do I take all the money deposited into my bank account in the UK, and tell the tax office it is in the UK bank?
If so, is there any tax-free elements? and most importantly has this ever impacted your taxes here in Japan?
Also since some of us weren't fully aware of this, any penalties?
And also since it was supposed to be my home for when i return, how is this going to punish me once the WHOLE Mortgae is cleared. Because as you know MOST buy to let mortgages maybe interest only and not paying the capital off, until they sell up.
Thank you.
You are supposed to report it both to the HMRC and the Japanese tax office.
HMRC, it is best to set up a gateway account and you can submit a tax return through that, or you can do a paper form. If you collect under about 12000 pounds, UK tax free allowance you do not need to pay any income taxes. Ground rent, letting agent fees, management fees and a few other things are allowed to be deducted, but crucially mortgage interest is not tax deductible. They got rid of that a couple of years ago. I think the UK tax return is not too challenging and you can easily do it yourself.
Japanese tax office, personally I use a Japanese accountant- so I do not know in detail and the way to submit it, because she does all the paper filling for me. However, mortgage interest is tax deductible. I am sure there are more knowledgeable people on this forum who know what to do with submitting it.