5. Taxation & Legal Information
Taxation For Overseas Landlords
Where the Landlord resides abroad the Inland Revenue will hold Evans Baker responsible, as the letting agent, for any tax liability which arises on rents or income collected by us on your behalf. Similarly, if you currently live within the UK but subsequently move abroad we will be responsible from the time you leave.
Therefore, we operate the Non-Resident Landlord scheme run by the Financial Intermediaries and Claims Office (FICO) for taxing the UK rental income of non-resident landlords. As the agent, we will deduct the tax form the Landlord's UK rental income and pay the tax to the Inland Revenue on a quarterly basis, less any deductible expenses paid on your behalf during this time, i.e. repairs, insurance, agents fees etc.
To avoid this, Non-Resident Landlords can apply for approval to receive rental income with no tax deducted where:-
- their UK tax affairs are up to date; or
- they have never had any UK tax obligations; or
- they do not expect to be liable for UK tax.
If we are not in receipt of written approval from the Inland Revenue we shall be required by law to deduct tax at the basic rate. Registration forms for this scheme can be obtained at our office or by calling the FICO helpline 0151 472 6208.
Landlord and Tenant Act 1987
We are obliged to include your full name and address on all rent demands. If your address is outside England and Wales the Tenant must be provided with an address within England and Wales to which notices may be served to you. We will use our Islington office address but cannot accept liability for any loss or damage incurred either directly or indirectly although we will use our best endeavour to forward any notices to you promptly.
The "Assured Shorthold Tenancy"
The Assured Shorthold Tenancy is designed to protect both the interests of the Landlord and Tenant. All our tenancy agreements will be the Assured Shorthold Tenancy unless otherwise instructed. This is a fixed period tenancy with the minimum term of six months. We advise twelve months (364 days) to be the maximum term to set up at any time. At the end of the term agreed the Landlord has the right to repossess the property subject to a Notice of Possession served at least two months in advance. The initial term of tenancy can be extended subject to agreement by both parties. All the relevant documentation, the Tenancy Agreement and subsequent Notices, will be drawn up and issued by Evans Baker. Evans Baker will require written instruction from the Landlord to issue a Notice for Possession during an extended term.
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