THE ESSENTIALS
At a glance
Location | Wilmslow, Cheshire |
Client | Three joint private owners, one of whom lives outside the UK |
Instructed | April 2023 (first property); April 2024 (second property) |
Service | Residential lettings and ongoing management of two properties, plus help registering under HMRC’s Non-Resident Landlord Scheme (NRLS), with individual owner statements |
Status | Ongoing |
THE CHALLENGE
Three joint owners had two vacant residential properties in Wilmslow to let. One of the owners lives outside the UK, which brought HMRC’s Non-Resident Landlord Scheme into play: rent paid to a landlord based overseas is subject to specific tax rules, and those rules apply to that owner’s one-third share of the rent rather than to the whole property.
The owners needed more than tenants. They needed the properties let and managed properly, the NRLS registration completed correctly, and a clear financial picture that each of the three owners could see for themselves.
OUR APPROACH
Read the space, then reshape the instruction
Oakmount listed each property to let alongside other local agents. On the first property, a local agent found the tenant and set up the tenancy, and Oakmount took over management from the day the tenant moved in. On the second property, a year later, Oakmount let the property.
Oakmount also helped the owners navigate HMRC’s NRLS and complete the registration. Only the non-resident owner’s one-third share falls within the scheme, so the registration and the way rent is accounted for were set up around that.
Because the non-resident owner hasn’t provided an HMRC certificate, Oakmount deducts tax from their one-third share of the rent on their behalf. The other two owners’ shares aren’t affected.
Day to day, Oakmount handles the full management service for both properties: tenancy deposit handling, compliance certificates, rent collection, property inspections and maintenance.
Each of the three owners can open their own financial statement at the click of a button. The standard format is PDF, but the owners asked for Excel, so Oakmount provides the statements in that format.
THE OUTCOME
Both properties let and under Oakmount’s management, with the second let by Oakmount directly
NRLS registration completed, with tax on the non-resident owner’s one-third share deducted by Oakmount on their behalf
Each of the three owners has their own statement available on demand, in the Excel format they asked for
A tenancy that started with another agent was taken over seamlessly, with Oakmount managing from move-in
Management is continuing, with the portfolio growing from one property to two within a year
WHY IT MATTERS
Joint ownership with one owner overseas is more common than many people expect, and it adds a layer of tax compliance that a standard lettings service doesn’t always cover. Having Oakmount register and deduct on the owner’s behalf means the non-resident owner’s tax position is dealt with from the first rent payment, and the other owners aren’t affected.
The same goes for reporting. When several people own one property, each of them wants to see their own figures without chasing anyone, in a format they can use. Providing individual statements, in Excel as well as PDF, meant the owners could keep their own records in the way that suited them.
COMMON QUESTIONS
FAQ
What is the Non-Resident Landlord Scheme (NRLS)?
It is an HMRC scheme for landlords whose usual home is outside the UK but who let out UK property. In general, tax is deducted from the rent unless HMRC has approved the landlord to receive it without deduction. Everyone’s position is different, so please take your own tax advice.
Does Oakmount have to deduct tax from a non-resident landlord’s rent?
It depends on the owner’s HMRC status. If a non-resident landlord has registered with HMRC and given Oakmount the certificate, no tax is deducted. In this case the owner hasn’t provided one, so Oakmount deducts tax from their share of the rent on their behalf.
Can Oakmount manage a jointly owned property where only one owner lives abroad?
Yes. In this case there were three joint owners and only one lived outside the UK, so only that owner’s one-third share fell within the NRLS. Oakmount helped with the registration and provides a separate statement to each owner.
Can owner statements be provided in Excel instead of PDF?
Yes. PDF is the standard format, but statements can be provided in Excel. The owners in this case asked for Excel, and each can access their own statement at the click of a button.
Does Oakmount manage a property if another agent found the tenant?
Yes. On the first property in this case, a local agent found the tenant and set up the tenancy, and Oakmount took over management when the tenant moved in.