Hong Kong Property

Dear HMMC I and my family jointly own a property in Hong Kong, each holding a 50% share. The property is currently rented out, with a monthly rent of £980. The property itself has a monthly mortgage payment of £1070, monthly management fees of £105, an annual council tax of £407, and property tax for this year is £705. I would like to know how I should report these tax items. Thank you.

Hi,
If you are receiving income from an overseas property you will need to report this in a Self Assessment tax return.  
Please refer to our website at:
Tax on foreign income  and  PIM4702 for more information
Thank you.

Hi, Thank you for your response. As this is my first time reporting relevant taxes, there are many aspects that I don't understand. In my situation, should I subtract the annual income tax from the related costs, such as local taxes, management fees, and property tax in Hong Kong, and then report the remaining balance after dividing it by half? Thank you.

Hi,

You will need to report your foreign rental income on a SA106 Foreign supplementary page. You will declare your share of total rents received before deductions and share of allowable expenses in the relevant boxes. You can see more information of how to complete the SA106 and what you can claim as expenses here: 

Foreign notes (2022-23)

If you have been charged to tax by the Hong Kong tax authorities then you may also be able to claim relief if a Double Taxation Treaty exists. You can see guidance here: 

PIM4702 - Rent from property outside the UK: Income Tax (IT)

Relief for Foreign Tax Paid 2023 (HS263)

Thank you.