Rental income with DTA in place

According to Article 6(1) of the UK/Portugal Double Taxation Convention, “Income from immovable property may be taxed in the Contracting State in which such property is situated.” I came to the UK in end Feb 2023 and have become a UK tax resident in 2022/23 with split year treatment. I own properties situated in Portugal and the rental income has been taxed in Portugal. I am NOT claiming remittance basis. In my tax return for 2022/23, where should I report the rental income – under SA106 or under HS302 attached to SA109, or both? HS302 states that “I am excluding any other income or gains stated on the next page from my UK tax return on the grounds that they are exempt from UK tax under the terms of the DTA above.” Does it mean that if I declare exemption in HS302, there is no need to report the rental income in any other part of the tax return? Thank you for your advice.

Hi,

Under Spit Year Treatment, when completing your 2023 return you would only have to declare any rental income received between the date you arrived in the UK and 5 April 2023. The rental income should be reported in the Foreign pages (SA106) of your return.              

Residence, Domicile and Remittance Basis Manual                                         

Foreign notes (2022-23)

Thank you.