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Posted Thu, 12 Oct 2023 12:10:42 GMT by
Hi, I live in Northern Ireland and rent out a property here on which I pay tax. I am due to start a PAYE job in ROI next month, where the total tax and USC paid there can be offset as Foreign Tax Credit when filling in my self assessment. My question is, how does my UK personal tax allowance work when claiming the foreign tax credit together with my UK rental income? For example (numbers are for illustration purposes only): ROI salary is 90,000 GBP, on which 29,700 GBP is tax+USC paid in ROI UK rental income is 10,000 GBP after deductible expenses Is the following calculation correct: 100,000 GBP total declared income in the UK results in 27,432 GBP tax liability (personal allowance of 12,570 included). Having already paid 29,700 GBP in ROI, this is fully applied in the UK too, resulting in no additional final UK tax liability. Thank you!
Posted Tue, 17 Oct 2023 14:32:23 GMT by HMRC Admin 10 Response
Hi
We are unable to comment on specific tax scenarios on this forum, but I can confirm that your UK personal allowance and any Foreign Tax Credit relief due will of course be taken into account when calculating your UK tax liability and that the appropriate tax rates will apply.       
Relief for Foreign Tax Paid 2021 (HS263)                                                                                             
Residence: Personal Allowances

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