Overseas rental income

Hi, I have an overseas property in hong kong, my parents rent it out and receive rental income to their own hong kong account, I never receive any of these rental income (and therefore is not my overseas income) and confirm that these funds were never remitted to the UK. Do I need to file a self assessment in such case? And what is the definition of overseas rental income?

Hi,
If the property is in your name you are the one who is liable for any rental income received unless you have a declaration of trust in place to confirm you are not the beneficial owner of said income. if UK resident and now domicile you need to declare the income even if not remitted and a tax return would be required:
Tax on foreign income
Thank you.

Hi, Thanks for your reply. I don't have a declaration of trust but instead i have a legal document 'Power of Attorney' which appoints my parents the right to to grant leases and tenancies of the said premises, and to pay tax of the premises. In such case, do i need to fill a self assessment? Thank you

Hi anthea_vv w,
This 'power of attorney' document allows your parents to let the property on your behalf.  
You are the legal and beneficial owner of the property, so any income it generates is yours and you are liable to pay tax on it.  
Hong Kong have the right to tax this income first, as part of the UK / Hong Kong tax treaty (Tax treaties).  
You will also be liable to pay tax on this income in the UK.  
This foreign property income should be declared in a self assessment tax return.  
The tax treaty allows you to claim a tax credut of up to 100% of the tax paid on the income in Hong Kong.
Thank you.

 

Hi, from your reply, i understand i need to file a self assessment unless i am non-domicile and have a declaration of trust to confirm i am not the beneficial owner of the said rental income. Thanks for your help