PL - UK treaty rental income art 6

Art 6 of PL-UK treaty : "(1) 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" I have a property at Poland, I am the UK resident. Property is rented. I will pay at Pl - as established per cent of income (with no possibility to change eg by expenses). I checked at forum and every time I saw similar question your answer is more less: if you are UK resident you must pay here as well. Question : should I PAY in UK (Poland demands to pay in Poland), or should I fill self assesment form and if my tax at PL is bigger than UK pay nothing extra or can I do nothing at UK ?

Hi answerpls,
You have to declare the property income firstly in Poland & then in the UK for the relevant UK tax year.  
When you declare the income here you can deduct any expenses that would be allowable if the property was a UK property & let out in the UK.  
Any tax that you have already paid in Poland can be taken into account in your final tax bill.  
You declare this income & any tax already paid on it on an SA106 Foreign Page.
I have based my answer on the SA106 guidance notes.  They can be found here:
Foreign notes Tax year 6 April 2023 to 5 April 2024 (2023–24)
Thank you.


 

Thank for clarification and usefull link. I am not sure how forum works, but as I do not need an answer immediately, I will not open a new question. Question is about capital gain - if this flat is sold, there is (in the same treaty) also the wording :gain "may be" taxed in a state where the property is, which I understand "will be" taxed in a country of residence, with the same possibility taken into account tax already paid.

Hi,

Your country of tax residence has the right to tax you on your worldwide income and the country where the property is situated may also tax you, even if you are not resident there. Any foreign tax paid, can then be claimed as Foreign Tax Credit Relief to reduce your UK liability for the same source of income.

Thank you.