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Posted Mon, 23 Jan 2023 09:32:46 GMT by Rory Gibson
I have been given conflicting information from my accountant vs HMRC and I am seeking clarification. I am non-resident in UK for 2021-22 but of course I have to complete a self-assessment to account for the UK rental income. My accountant said I can ignore all my foreign income (in Portugal) in the SA tax return and only have to state the rental income. However, I had a conversation with someone on the phone at HMRC earlier in the year who thought that if I am filling in a SA I have to include all foreign income, EVEN as a non-resident. She said I would have to fill in SA1003 with all of my income, and then OFFSET that income on SA101 by listing it as foreign income. Then in SA109 I would be able to claim my personal allowance. is this correct? It doesn't seem logical to me that I would have to log my Portuguese income in SA103 when I am non-resident and it's not taxable in the UK. My accountant goes one further and says I don't even have to log my Portuguese income in SA101 (or anywhere for that matter). Could you please clarify where exactly my UK rental income and my Portuguese income (if at all) should be logged in my SA? Thanks
Posted Wed, 25 Jan 2023 10:11:34 GMT by HMRC Admin 17

HMRC has the right to tax income and gains from immoveable assets and some government pensions, even if you are not resident in the UK. 

If you are not resident in the UK, then from HMRC's perspective, you are not taxable on foreign income in the UK. 

For this reason, as a non resident, you would complete SA100 (main tax return), Sa105 (property income) and SA109 (residence). 

SA100, would show taxable pensions, SA105 income from UK property and SA109 non-residence and
a claim for personal allowances if allowed .

Thank you.

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