Rental income from Singapore property

Is rental income from Singapore property taxable only in Singapore? Referring to Article 6 of the Singapore-UK DTA. "Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State."

Hi wdnwtpt,
Thank you for your question.
As a UK resident you need to declare your worldwide income.
If you have paid tax on the property income in Singapore then you may be able to claim relief for this when declaring the income to us.
More information can be found here: 
Tax on foreign income
Thank you. 


 

Thanks, Admin 25. I was not asking about the declaration; I'm asking about the interpretation of Article 6 of the DTA, which seems to indicate that income from immovable property would only be taxable in the the country the property is located.

Hi
Thank you for your question.
As demonstrated within your question and previous one, as per article 6 of the UK/Singapore Double Taxation Agreement, income from immovable property from Singapore would only be taxable in Singapore if you are a resident of Singapore.
If however, you are a UK resident, then you would be expected to disclose the level of income received in Singapore within the Self-Assessment Tax Return.
If you have already paid tax on this income in Singapore, then you may be able to claim relief on this. 

Dear HMRC admin, I had the same query as the above user. However, I think Admin 25's advice in the latest response doesn't seem to correctly reflect what is meant in Article 6: "Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State." This seems to indicate that, income derived by a resident of UK from a property located in Singapore will be taxed by Singapore. Does this gives exclusive taxing rights to Singapore where the property is located, and therefore no UK tax is payable? Thanks in advance for your review and advice.

Hi,

Income that 'may be taxed in the other countries' means that neither country has exclusive taxing rights.

If you are a UK resident you should report your Singapore property to HMRC with any tax deducted in Singapore as it is 'worldwide income' and claim foreign tax credit relief to reduce the UK tax due.

Tax on foreign income
Relief for Foreign Tax Paid 2023 (HS263)

If no tax is suffered in Singapore you will still need to report to HMRC who will charge any tax due on the foreign income.

Thank you