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Posted Thu, 22 Feb 2024 14:27:00 GMT by Duane Hardy
Hi there, I have a query regarding the FCTR declaration. The situation: Foreign income earnt for 2022-23 was £19,000 (6th April 22 to 5th April 2023). However, the foreign country returns run from 1st Jan 2022 to 31st December 2022 so the income earnt for that year was £16,000 taxable with £4,000 tax deducted at source abroad. So when the FCTR entry is declared, should the 2022-23 return reflect 1) the £16,000 taxable income with £4,000 tax deducted (both figures exactly from the foreign tax return for 2022) 2) £19,000 taxable income with £4,000 tax deducted (actual income for 2022-23 with tax deducted amount from foreign return Jan 22- Dec 22) 3) £19,000 taxable income with £4,750 tax deducted (actual income but pro rated tax £4000x19000/16000) Please let me know at the earliest convenience, thanks
Posted Mon, 26 Feb 2024 15:47:20 GMT by HMRC Admin 19

To simplify completing your UK Self Assessment tax return, which operates from April to April, all you need to do is transpose the figures from the foreign tax year into the UK tax return. So for example, foreign employment income arising from 1 January 2023 to 31 December 2023, would be declared in the 2023 to 2024 UK tax return, as 31 December falls in the 2023 to 2024 tax year.  

A years worth of income from 1 January 2023 to 31 December 2023 is equal to April to April for tax return purposes.

Thank you.
Posted Mon, 26 Feb 2024 16:08:50 GMT by Duane Hardy
Thank you, also these are taxes deducted on rental profits. There are items such as amortisation allowed for (tax deducted) in the foreign tax return which would normally not be allowed against UK rentals. So should those be allowed for in the foreign income section exactly as in their foregin return or should such items be disallowed? Thanks
Posted Wed, 28 Feb 2024 08:14:29 GMT by HMRC Admin 25
Hi Duane Hardy,
Amortisation is not an allowable expense for UK.
Please see on what is allowable
PIM2068 - Deductions: main types of expense: contents
Thank you. 

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