For those of you who own a UK rental property but live overseas, you need to comply with the Non-Resident Landlords (NRL) scheme as this sets the rules as to how you pay tax. The scheme requires UK letting agents to deduct basic rate tax from any rent they collect for non-resident landlords. You can set this tax off against your own tax bill at the end of the year.
What is a large HMO?
A rented property is considered a large house in multiple occupation if:
When a house is let to sharing occupants who are not a family unit, landlords must ensure that the property complies with rules around Houses in Multiple Occupation (HMO). These rentals are either defined as a standard HMO or large HMO.
What is a House in Multiple Occupation (HMO)?
A rented property is considered a house in multiple occupation if at least three tenants live there. Forming more than one ‘household’, the tenants share toilet, bathroom and/or kitchen facilities.
What is a ‘household’?
A household is defined as either a single person or members of the same family who live together. A family includes people who are:
As well as all your normal legal responsibilities, you must ensure:
What are my responsibilities if I let a large HMO?
As well as those responsibilities covered by a standard HMO, you must ensure you have been approved for a HMO licence by your local council. A HMO licence will last for five years and will only be granted if: