Handling of oversea income & tax if different from UK tax period

Hi, I have a question regarding oversea income / tax, I have an oversea property with rental income in Malaysia (MY), the tax period of MY is Jan-Dec i.e. full year 2023. I will report my rental income of whole 2023 in MY and will pay the tax in 2024 second half of the year. When I report my income in UK self assessment, how should I report this income and oversea tax relief? 1. Should I report my oversea income following the UK tax period i.e. Apr 23 - Apr 24 regardless the corresponding oversea country tax period? 2. Although I know the oversea tax amount to be paid when I report the self assessment for 2023/24, the tax is actually pay within UK 2024-25 tax period, should this tax relief fall into which self assessment ? 2023/24 or 2024/25 ? 3. In term of rental income deductible expense, the type of expense allowed may not align in MY and UK, if the expense in not allowed to be deducted in MY but allow in UK, can I still deduct this amount in my income when report in self assessment in UK? Thanks a lot.

Hi,
You would declare your overseas income arising for the tax year 1 Jan 23 to 31 Dec 23 in a 2023 to 2024 tax return, treating it as arising from 6 April 2023 to 5 April 2024.  
In this way, you use the figures for the Malaysian tax year as though they were the UK tax year, saving you from having to apportioning the income to match the UK tax year.
Thank you.

Hi admin, Thank you for the reply, how about my Q3? For example, the (1st time) agent fee is not tax deducible in MY but in UK it allows, can I further deduct these expenses in my UK return? Thanks

Hi BOBU L,
You follow UK rules for income from property.
If the expense is allowable in the UK, then you can claim it, should it arise.
Thank you.