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Posted Sun, 03 Sep 2023 14:12:06 GMT by Jchun
Hi, I’m a UK resident. I have UK employ income £33,600 per tax year. On the other hand, I own a property in Hong Kong and have rental income £17,100. After deducing all property expenses, I paid £2,000 Hong Kong rental income tax already. My first question is that under Double Taxation Treaty, the £2,000 Hong Kong rental income tax I paid is counted in property expenses or should be deducted after my UK payable tax? My second question is that I need to pay £7,900 mortgage interest for my Hong Kong property. Is it a part of property expenses in UK? My third question is which form I should fill in? Thank you very much.
Posted Wed, 06 Sep 2023 11:34:51 GMT by HMRC Admin 20
Hi Jchun,

The tax paid in Hong Kong is not a rental expense but you can claim foreing tax credit relief.
You can claim the mortgage interest as a relief.
This income should be declared on the SA106 foreign income page - Tax on foreign income

Thank you.

Posted Fri, 08 Sep 2023 23:20:46 GMT by Seas
Dear Sir, I am a foreigner from commonwealth country who earns rental income from a small unit in Uk. It is shared with my partner. 1) Do I minus £1000 property allowance for each of us for this only unit from our gross rental? I just want to confirm this £1000 is personal allowance correct? 2) what is the actual threshold for tax? Any rental income below £12571.00, do I have to pay tax ? My rental income minus allowable expenses and divide by two ( my name & my partner) is usually less than £1000 per year. 3) I have been submitting self assessment via post, do I still need to keep doing this if my net rental income is less than £1000? Appreciate your advise, thanks
Posted Mon, 18 Sep 2023 13:01:51 GMT by HMRC Admin 32

As you are not resident in the UK and have income from UK property, you will need to complete a Self Assessment Tax Return every year, whithout exception.
As the income from the UK property is jointly owned, both of you will need to declare 50% of the gross proift in a Self Assessment Tax Return. Both of you can choose to claim £1000.00 property income allowance, instead of claiming expenses. The net profit is added to any other UK income and if you are entitled to claim personal allowances, the personal allowance of £12570, is set against the total income. If the income is below the personal allowance, there is no tax liability.

Thank you.
Posted Mon, 18 Sep 2023 23:52:25 GMT by Seas
Dear Sir, Thanks for your feedback. Will I be able to claim back over paid tax as I was not aware of these personal allowances previous years? Thank you!
Posted Fri, 29 Sep 2023 09:25:55 GMT by HMRC Admin 20
Hi Seas,

If you are entitled to claim personal allowances in the UK then you can claim on form SA109.
Residence, remittance basis etc (Self Assessment SA109)
Please also see attached link re making changes to tax returns already submitted and time limits for doing so.
Self Assessment tax returns If you need to change your return

Thank you.

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