We frequently work with landlords and property investors, advising them on the financial management of their property portfolios and exploring ways to mitigate their tax liabilities. Therefore, we like to keep up to date with any changes in legislation that may impact our clients.
This article summarises some changes that are being introduced over the next few weeks as a result of Brexit.
When you rent a property, you need to check that the tenant is legally allowed to rent a property in England. You also need to check that the tenant is 18 years or above, even if the tenancy agreement is not in their name. You must carry out these checks for all tenants and not just those you think are not British citizens.
During the pandemic, it hasn't always been possible to check all the paperwork face to face; you can carry out the checks as a video call if necessary. You need to check the following:
Take copies of the original documents, and if the tenant is only allowed to stay in the UK for a limited time, you need to do the check-in 28 days before the start of the tenancy.
Currently, when you check tenants that are EU, EEA and Swiss citizens, you can check their passport or national identity card.
Once the Brexit deal was agreed upon, all European Economic Area and Swiss citizens were given time to apply for settled status in the UK. From 1st July 2021, if you are carrying out a right to rent check on a new tenant, you need to check their UK immigration status rather than check their nationality.
Your tenants should be able to share their immigration status digitally. The Home Office set up an online Right to Rent service in 2020, so the tenant can give you a share code and their date of birth, and you can check their immigration status online.
There may also be EEA citizens that still have paper documentation, their visa, so you need to check this and make a copy for your records.
We hope you found this article useful. If you are a landlord or property investor and looking for an experienced accountant to help with your tax planning, please contact us.
You can call 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..
Haidee is our Personal Tax Director and is a fully qualified tax adviser, having achieved the ATT qualification in 2006. Tax efficiency being her main concern. Specialising in taxation, Haidee provides clients with advice on personal tax, PAYE services, VAT and social security. She also provides guidance to new start-up businesses.
Call us today on01623 490120
or email info@watsonk.co.uk
When you first start a business, your focus is usually on attracting customers, generating sales and building a successful company. Few business owners spend much time thinking about how or when they will eventually leave the business.
More blog posts