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Posted Fri, 08 Sep 2023 10:32:33 GMT by
Hello, I bought a property in Italy to let out for short lets (it meets all the criteria to be classed as FHL), I have a couple of doubts with regards to taxation though: 1. I'm currently paying tax on it in Italy (the letting agency directly pays on my behalf the Italian flat rental tax 'cedolare secca' of 21%). Anyone know the correct way to deal with is, should I keep paying and then claim it back when UK tax is paid? 2. I've heard contrasting things on the tax rates for FHL. This is my only let property, it's held in my name, and I have a full time job in the UK for which I pay income (through standard PAYE). What tax rate should I be paying on the net income from FHL? Is it my income tax rate? thank you
Posted Mon, 11 Sep 2023 14:21:49 GMT by HMRC Admin 17

Hi,
 
Thank you for your question yes you would continue to declare the rental income and tax on a foreign income page
and claim back the foreign tax credit relief  against your income.

  Your tax rate for thre FHL would be the rate at which your employment income is taxed usually either  20% or 40%  .

Thank you.

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