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Posted Fri, 16 Sep 2022 22:21:42 GMT by Fangyou Ye
Hi, I moved to London from Italy. In Italy, I own an apartment which I rented out, so I am trying to fill out the self-assessment to declare the income I received from it. So I have two questions, one regarding the foreign income (from rent) and another one about the private medical insurance benefits I get from my employer 1) After inputting all the data I need in the "Income from land and property abroad" I insert also the "Foreign tax taken off or paid" (the exact amount, in the absolute value of how much I have already paid x% of taxes times the taxable income) in Italy Tick yes for "Do you wish to claim foreign tax credit relief". However, in the calculation section, they report as "Foreign tax credit relief against UK Income Tax" is way lower than what I declared (I already paid in Italy around 20% of it). For the principle of avoiding double taxation should not I consider the whole amount I paid? For example, if on a taxable income of £1,000 I pay taxes in Italy for £200, in the UK should not I just pay the remaining portion? Assuming a tax bracket of 40%, £400 - £200 (already paid) for a difference of only £200? 2) In my payslip I receive a benefit for the amount I should pay for the medical insurance from my employer, as a consequence I have to pay myself the taxes on top of it. Reading through the instructions while filling out the self-assessment, I read about the P11D document. However, I do not have this document available and I am sure my payslips and the medical/dental benefits are accounted. So, is it normal to not have the P11D in this circumstance? Then should I just fill this part of the self-assessment considering the information I have in the payslips? Many thanks
Posted Tue, 20 Sep 2022 13:41:58 GMT by HMRC Admin 17

Hi,
 
1. The foreign tax credit you can claim cannot exceed the UK tax that is due on the foreign income.

If you have paid £400 abroad but only £200 is due n the UK, the foreign tax credit relief is limited to £200.

See guidance at :

Tax on foreign income  .

For the medical benefit, you will need to check if the medical benefit is payrolled or not.

It is is then you dont include it on the return as this isa ccounted for in your salary and tx ax paid.

If not payrolled then yes you need to declare it.

Thank you.

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