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Posted Sun, 22 Oct 2023 16:43:47 GMT by
Dear HMRC, I am confused on the foreign property tax calculation. I am working on UK by BNO VISA. Assumed my taxable income on a Hong Kong property in a tax year is GBP 10000 The property tax I paid to HK government is GBP 1500. Should this GBP 1500 deduct as a ' taxable income ' or' TOTAL calculated tax '? It could be a large difference. Best regards, 

Name removed admin 
Posted Thu, 26 Oct 2023 09:46:48 GMT by HMRC Admin 20
Hi SHING FUNG NG,

You cannot deduct this as an expense but this would appear to be an income related tax so you can claim foreign tax credit relief to set against any
UK tax that is due on the same source of income - Relief for foreign tax paid (Self Assessment helpsheet HS263)

Thank you.
Posted Tue, 31 Oct 2023 13:39:20 GMT by JessicaLove
Dear HMRC My situation is similar to this. I need to submit a tax return for year 2022-2023 as my total income ( foreign property rental income + UK state pension) has exceeded tax allowance. I have paid £1600 property tax to HONG KONG inland revenue for the tax year 2022-2023 because of the rental income in HK and I have worked out my payable tax to HM inland revenue is about £650. my question is can I still claim foreign tax credit relief for the £1600 as this figure is bigger than UK tax of £650? And if I can. How much can I claim back and how does it work? Is it foreign tax credit relief that I need to claim in order to avoid paying tax twice in two countries on the same taxable item? Many thanks for your help

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