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Posted Thu, 11 Jan 2024 23:01:03 GMT by
Hi, I have some foreign income from rental properties, which is taxed abroad. However, I also pay the Unified Property Tax, which is charged on property owned, regardless of whether the property gives me any income. Can I claim that too? And if so, where? It's not income tax, so do I enter it as an expense? I am filling in my tax return online, by the way.
Posted Wed, 17 Jan 2024 08:59:34 GMT by HMRC Admin 5

You can only claim the expenses that are set against the property in the country the property is in.  
The profits of the overseas property business are computed in the same as the profits or loss of a trade, just like a UK rental business.  
This means that a UK resident landlord will pay tax on the same profits both here and abroad. But the double charge is relieved by deducting the overseas tax paid on the property income from the UK tax due on the same income.   (PIM4702 - Rent from property outside the UK: Income Tax (IT)).

Thank you
Posted Thu, 18 Jan 2024 12:18:20 GMT by
Thank you for your reply. Does that mean I cannot claim that as an expense or tax paid? There are some fields for expenses in the foreign section but nothing seems to match. I'd assumed that, once I had calculated the proportion of the Unified Property Tax that corresponds to the properties that give me income, I could then do one of the following: 1. Directly subtract it from the income figure 2. Add it as some kind of expense - though not sure which type - or 3. Add it to the income tax paid abroad I'm not sure if "You can only claim the expenses that are set against the property in the country the property is in. " means I cannot take it into account at all or if I can go with 3 from above
Posted Fri, 19 Jan 2024 10:56:22 GMT by HMRC Admin 25
Hi Egg,
As this is specific to the country the properties are held, for declaring in the UK return, on the foreign page, your expenses are lumped together so it would just be included with your other expenses.
Thank you.

[Post Amended - HMRC Admin] 

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