Foreign FHL

I have a FHL property in the EEA. I have been declaring it to HMRC via my self-assessment using the depreciation calculation reflecting the Spanish declaration. However, it has come to light that the depreciation on buildings is not allowed on UK FHLs. Is this the case for Foreign FHLs where depreciation is allowable in the country of origin? As this will mean that I will have no tax to pay in Spain but a large tax bill in the UK as I have no foreign credit to offset the liability.

Hi,
We are unable to provide information on foreign taxation rules of another country. However, when reporting any income to the UK, the UK regulations should be followed. Guidance on working out profits and losses on FHLs can be found here:
PIM4115 - Furnished holiday lettings: calculating profits and losses
PIM4702 - Rent from property outside the UK: Income Tax (IT)
UK rules currently do not allow for depreciation as the wear and tear allowance was abolished from 2016 to 2017 onwards:
PIM3205 - Furnished lettings: Overview
If there is no tax to pay in Spain under the Spanish taxation rules on FHL, then there will be no scope for any Foreign Tax Credit Relief. 
Thank you.