Foreign Tax paid - Property Income Allowance & Foreign Property Tax Relief

Hello HMRC admin team, Thank you first of all for creating this forum. It's extremely helpful to get answers about any questions we have. My question is: I have filled in my Self Assessment for a Foreign Property I own in Greece as always. This year I noticed the Property Income Allowance for the first time and I filled it in for the full 1000 pounds as my income was 1022. I understand I should not put any numbers to the deductable expenses I have made to the property. My questions are: 1. I have put the Foreign Tax I have paid for the property under "foreign tax paid for property". Is this correct as i have used the Property Income Allowance? 2. I have also put the Foreign Tax paid in the Foreign Property Tax Relief, which is what I do every year as this was what I was advised for. Is this correct? Many thanks, Ann

Hi,
 

Thank you for your question. You are correct, when claiming the £1,000 Property Income Allowance, expenses can then not be claimed, however, you are allowed to claim whichever is more beneficial to yourself for that specific tax year. If tax has already been deducted from your rental property, then on F4 Section C and box 28 of the SA106 Property supplementary page you would declare the sum taken already, then as per instruction, under Foreign Property Tax Relief. Further guidance on working out the Foreign Tax Relief may be found using Helpsheet HS263: Relief for foreign tax paid (Self Assessment helpsheet HS263)    . Thank you.