Singapore-based professional with a London rental property — three years of unfiled non-resident returns

The situation

Our client was a Singaporean national who had relocated from London to Singapore in 2020. He retained his Islington flat and let it, with the letting agent deducting 20% tax at source under the UK Non-Resident Landlord Scheme. He assumed this settled his UK tax obligations.

The challenge

The 20% withholding is a withholding on account, not a final tax settlement. Non-resident landlords are required to file UK Self Assessment returns each year, declare the gross rental income, claim allowable deductions, and account for any difference between the tax withheld and the actual liability. Our client had not filed for any of the three years since relocating.

Our approach

We introduced our client to a UK-registered tax adviser in our network. The adviser assessed the position for all three years. For each year, allowable expenses were identified and claimed, including mortgage interest, letting agent fees, insurance, and maintenance. In two of the three years, the actual liability after expenses was lower than the amounts withheld, resulting in a repayment position. In one year, there was a modest underpayment. All three returns were filed.

The Singapore position was confirmed: Singapore operates a territorial tax system and does not tax foreign-source income not remitted to Singapore. No Singapore obligation arose.

The outcome

Three years of UK Self Assessment returns were filed. A net repayment was received for two of those years. An annual filing arrangement is now in place. Our client has a clear understanding of both his UK and Singapore obligations.