Oversea property rental income and split year treatment

Hello HMRC Admin, My wife and I have a property in Malaysia with 50/50 equal weight of shares and let for rent in 2023-2024. On the other hand, we also applied for split year treatment for tax year 2023 to 2024. The question are as below. 1. If the rental incomes started from the split year treatment date to 5 April 2024 is NOT exceed £1000, do we still need to report tax return in SA106 through self assessment? 2. Do we both have the Property Income Tax allowance of £1000 each? 3. If we DO NOT need to report property income tax, can we still report the Mortgage Interest as the finance costs to be carried forward? Thank you.

Hi,
 

Thank you for your question. Unfortunately, there is not enough information to give an accurate response, as we would also need to know the tax residency circumstances. Your question is not relevant to this form as the forum relates purely to UK properties. As the property is situated in Malaysia, I would point you to Article 6 of Double Taxation Agreement between the UK and Malaysia. Split Year treatment would only be relevant if you have ceased to reside in the UK and you should complete SA 109 Residence remittance basis etc when filing your 2023-24 tax return. As regards the finance costs, this will depend on who has charging rights. If Malaysia has the charging rights it would be for them do decide if the costs can be deducted from the gross income.  The Property Income Tax Allowance is only relevant where the property is in the UK and if claimed no other expenses would be allowable. I believe that it would be in best that you write to us individually concerning your personal tax affairs in relation to the points raised. Thank you .

Thank you for your advice! May I have the contact where we can write to HMRC for our situation? Thank you very much!

Hi,
 

HMRC, Self-Assessment and PAYE, BX9 1AS. Please when writing state your National Insurance Number and Self-Assessment Unique Tax Reference (UTR), if applicable.

Thank you