Managing your London flat from New York
Many Brits in New York keep their London flat for when they move back. The difference from the Gulf or Asia is tax: the same rent is reported in both countries.
In short
- Time: New York is usually 5 hours behind London (4 hours for a few weeks around the clock changes in March and late October). Your agent's office closes at about noon your time.
- Tax: the rent is taxed in the UK, and as a US tax resident you also report it on your US return. The UK tax normally offsets the US tax through the foreign tax credit, so you rarely pay twice. You do need statements both accountants can use.
- The common complaint: statements that work for HMRC but not for a US accountant.
Tax in two countries
- UK: rental profit is taxable in the UK. Your agent withholds 20% under the Non-Resident Landlord Scheme unless HMRC approves you to receive rent gross (form NRL1). You file a UK Self Assessment return. See the Non-Resident Landlord Scheme guide.
- US: US tax residents report worldwide income, so the London rent goes on your US return (usually Schedule E), converted to dollars. The UK tax paid can normally be claimed as a foreign tax credit under US rules and the US–UK tax treaty.
- The rules differ: the UK and US treat mortgage interest and depreciation differently, so the profit figure isn't the same in each country. That's why clear, itemised statements matter.
- Get advice: a cross-border US–UK tax adviser is worth it in your first year.
What to ask your agent for
- A monthly statement that itemises every charge and its VAT separately.
- An annual summary for the UK tax year (6 April to 5 April), plus enough detail to rebuild the calendar year your US return needs.
- Copies of contractor invoices, not just totals.
- Your NRL6 certificate, if tax is being withheld.
A checklist for owners in New York
- Work out your all-in cost from 12 months of statements (see what agents really charge).
- Confirm whether 20% is being withheld, or whether you have NRL1 approval.
- Check that your statements give your US accountant what they need, by calendar year.
- Agree a repair spending limit, since the agent's day ends at your lunchtime.
- If you plan to move back, tell your agent early: since 1 May 2026, getting the flat back depends on proper notice under Section 8 (see the Renters' Rights Act guide).
Flatward is being built for owners like you: a planned flat £149 a month including VAT with finding a new tenant included, rent guarantee cover planned to be included, itemised statements for your accountants, and decisions approved from your phone in New York time. It's in development; join the waitlist for early access.
Find out what your agent really costs
Send us your last 12 months of letting agent statements and we'll send back a one-page breakdown: management fees and VAT, every other charge, and the same year at Flatward's planned flat fee of £149 a month. Free, and no commitment.
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