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Britain

Onus falls on owners to claim benefits

3-MIN READ3-MIN
SCMP Reporter

BRITISH residents in Hong Kong have less than two weeks to prepare for the end of the tax-year deadline.

This year's battle with British tax authorities will have special significance for thousands of homeowners who are letting their properties in Britain while based in the territory.

Inland Revenue has now changed the rules on the payment of interest relief on mortgages and simplified procedures for claiming expenses for those with more than one property.

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From April 6, the first day of the 1995/96 tax year, those eligible for MIRAS, (mortgage interest relief at source) must elect to have the benefit maintained if they are letting their house.

This can be done by writing to a British taxation office providing the name of the lending institution, its branch address and the property owner's mortgage account number, with a note stating the wish to retain the benefit.

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Relief is restricted to the interest payable on the first GBP30,000 borrowed, (about HK$366,600) and is payable whether or not the property is let.

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