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Posted Sun, 30 Jul 2023 16:32:16 GMT by
I have filed 22/23 tax year self-assessment, but made a mistake in handling foreign rental income because I misunderstood the concept of being domiciled. I filed foreign rental taxes on an arising basis and already paid them. I'm not domiciled and did not remit any of that income or plan to do so. I want to file an amendment with the SA109 form and claim the money I paid back. Also, I want to file it myself on paper without using any software. I have a single job and no other complicating factors or sources of income, so I do not owe any taxes to HMRC. Should I file the same return putting "amendment" word on every page, keeping "foreign rental income as it is", just add SA109 and change the tax calculation to 0? Or should I remove "foreign rental income" pages completely (or blank them out) since I'm claiming remittance basis on all of it?
Posted Fri, 04 Aug 2023 11:06:57 GMT by HMRC Admin 20 Response
Hi wikas,

As you are submitting on paper, all you would need to do is submit SA109, with a covering letter advising it is an amendment and that part of the amendment is to remove the SA106, becasue you will be claiming the remittance basis for the foreign rental income.  
Alternatively, if you have paid foreign tax on the property income, you could claim a foreign tax credit of up to 100% of the foreign tax paid, so that you are not taxed twice on the same income.
Have a look at the guidance at RDR1, as this is not always the best option (Residence, domicile and the remittance basis: RDR1).

Thank you.

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