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Posted Mon, 05 Dec 2022 21:40:30 GMT by Mel2305 G
I have a rental property in India for which I file taxes in India and I am within my allowance in India. I want to know that as per the DTA with India do I again need to include this rental income with my overseas interest savings income for which I need to file taxes. In short do we need to add the rental income to the foreign savings interest for taxation in UK and will I be liable to pay taxes on the Indian rental profits in UK ?The rental income is above UK rental allowance.
Posted Thu, 08 Dec 2022 13:15:11 GMT by HMRC Admin 32

If you are a UK resident and domiciled in the UK, then this income needs to be declared on a Self Assessment tax return.

Please have a look at the guidance at RDR1, to determine your particular circumstances. You can find the guidance here:

Residence, domicile and the remittance basis: RDR1

The double taxtation agreement between the UK and India, will allow the Indian tax authorities to tax income arising from an immoveable asset, such as a residential property.  

As a UK resident, with a UK domicile, you will need to include this income on the foreign section of the Self Assessment tax return. You can claim Foreign Tax Credit Relief of up to 100% of the tax paid in India, so that you are not paying the same tax twice.

Thank you.


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