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Posted Mon, 23 Sep 2024 08:39:44 GMT by Cargof
Hi, I am a UK tax payer and I have a HK property with rental income and under HK bank mortgage. Is mortgage interest tax relief applicable on my case? Thanks!
Posted Tue, 01 Oct 2024 13:34:06 GMT by HMRC Admin 19 Response
Hi,
The tax treaty allows for Hong Kong to tax your rental income first. HMRC will also have the right to tax your rental income in a Self Assessment tax return, under your worldwide income in the foreign section. You will need to work out your net profit using GBP sterling.  
You will also be able to claim for interest charged on the mortgage in the box 'Residential property finance costs' on your online return or box 44 of SA105: 
UK Property
Thank you.

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