Hi!
I was offered an internal job posting within my company based in their Singapore office, however, I currently own my house in the UK and will be putting it up for rent. However, I'm confused how income tax would work on that. If I had it paid into my Singapore account so I can actually use the money, will it be subject to income tax in Singapore or in the UK? Looking at sites like this tax calculator I would be over the personal allowance amount with just the money from the rent in the UK, and with my income there's no question I'd be subject to tax in Singapore.
Can anyone advise? Thanks!
SINGAPORE EXPATS FORUM
Singapore Expat Forum and Message Board for Expats in Singapore & Expatriates Relocating to Singapore
Moving out of UK but currently own a house here - what to do?
-
- Newbie
- Posts: 1
- Joined: Tue, 24 Apr 2018 11:44 pm
- Strong Eagle
- Moderator
- Posts: 11504
- Joined: Sat, 10 Jul 2004 12:13 am
- Location: Off The Red Dot
- Contact:
Re: Moving out of UK but currently own a house here - what to do?
Generally, passive income, ie, which includes rents from properties, is taxed in the country in which the property resides. Therefore, your rental income is taxable in the UK, not in Singapore.
Conversely, active income, ie, earned income such as salary and commissions, is taxed in the country in which you are resident. So, the salary you are being paid in Singapore is taxable only in Singapore.
Note that these are the general rules... specific countries have enacted additional rules and regulations covering residency, real estate ownership, etc.
Conversely, active income, ie, earned income such as salary and commissions, is taxed in the country in which you are resident. So, the salary you are being paid in Singapore is taxable only in Singapore.
Note that these are the general rules... specific countries have enacted additional rules and regulations covering residency, real estate ownership, etc.
Re: Moving out of UK but currently own a house here - what to do?
My general advice is to sell your home. Sounds crazy but not really. It's one less thing to worry about in your absence and it means absolutely no issues establishing tax residency in Singapore and cutting it in the UK. I see a lot of Aussies doing this now and I think more Brits are starting to do it. SE is correct but there are nuances around tax residency in the UK I am not familar with.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!
- Strong Eagle
- Moderator
- Posts: 11504
- Joined: Sat, 10 Jul 2004 12:13 am
- Location: Off The Red Dot
- Contact:
Re: Moving out of UK but currently own a house here - what to do?
While you need to carefully check your overall residency status, I am pretty sure that for the UK, so long as you are not in the country for more than 183 days, you will not be tax resident for active (earned income purposes). You will be liable for taxes on all other income. I refer you to two websites.PNGMK wrote:My general advice is to sell your home. Sounds crazy but not really. It's one less thing to worry about in your absence and it means absolutely no issues establishing tax residency in Singapore and cutting it in the UK. I see a lot of Aussies doing this now and I think more Brits are starting to do it. SE is correct but there are nuances around tax residency in the UK I am not familar with.
https://www.litrg.org.uk/tax-guides/mig ... esident-uk
https://www.gov.uk/government/publicati ... basis-rdr1
While there is merit in PNGMK's advice to sell to reduce your complications in life, there is another side to consider. In my case, I kept my house in the USA, rented it out to cover the mortgage, and moved back into it when I returned to the USA. I did this for two reasons. First, all the American expats I talked to where near unanimous in keeping a primary residence in the USA unless you knew for sure you wouldn't be coming back.
And second, properties were appreciating in Houston, such that I could not find an alternative investment (especially after sales and closing costs), that would return the same rate as my house appreciation. And that meant, I'd be coming back to the USA behind the eight ball. My cash nest egg from the sale's appreciation would not have kept up with the increase in the price of homes, meaning that I would end up in a poorer house or having for fork out more cash in order to buy what I left behind.
So certainly, a careful analysis of your circumstances is warranted.
Re: Moving out of UK but currently own a house here - what to do?
Agreed SE that losing pace in a rising market is a concern.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!
-
- Similar Topics
- Replies
- Views
- Last post
-
-
PR approved for Family but currently Overseas
by fm29 » Mon, 01 Feb 2021 2:55 pm » in PR, Citizenship, Passes & Visas for Foreigners - 12 Replies
- 4187 Views
-
Last post by singaporeflyer
Sun, 07 Mar 2021 10:46 pm
-
-
-
Pending PR application under Spouse scheme but asked if I'd like to apply under own merits
by lhpmh » Fri, 29 Jul 2022 1:30 pm » in PR, Citizenship, Passes & Visas for Foreigners - 5 Replies
- 1690 Views
-
Last post by PNGMK
Mon, 01 Aug 2022 12:59 pm
-
-
-
Previous flatmates moving out but refuse to collect his stuff
by jakejungle » Mon, 05 Oct 2020 1:00 am » in Property Talk, Housing & Rental - 5 Replies
- 2323 Views
-
Last post by PNGMK
Mon, 05 Oct 2020 4:29 pm
-
-
-
42 male, Malaysia, currently living in UK London, and was working in Singapore 18years ago
by Davehong » Wed, 15 Aug 2018 6:24 am » in Newcomer's Lounge - 0 Replies
- 1901 Views
-
Last post by Davehong
Wed, 15 Aug 2018 6:24 am
-
-
-
Currently EP holder. If I quit my job now and reapply for new job in the future does it make me harder to get pass?
by cyrus7 » Wed, 16 Oct 2019 8:53 pm » in Careers & Jobs in Singapore - 2 Replies
- 2059 Views
-
Last post by Hatem
Fri, 18 Oct 2019 10:18 am
-
Who is online
Users browsing this forum: No registered users and 31 guests