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Posted Fri, 30 Aug 2024 17:18:45 GMT by finpin
My husband and I have a villa in Greece, so in the EEA. In the tax year 2023 - 2024 we rented it out, on short term lets, for a total of 60 days. We are UK residents. (In case important: The gross income was just under £8,000 and we paid Greek income tax of 15% .) Do we have the option of claiming allowable expenses or is that only for FHL, ie properties which are let for at least 105 days? Do we have the alternative option of each claiming the £1000 tax allowance?
Posted Wed, 11 Sep 2024 08:44:44 GMT by HMRC Admin 25 Response
Hi finpin,
If it does not meet the conditions to qualify as a fursnished holiday let, yes you declare as rental income and can claim the £1000 allowance.
Please see:
HS253 Furnished holiday lettings (2024)
Thank you. 
 
Posted Mon, 16 Sep 2024 10:31:01 GMT by finpin
Thank you. Our property cannot meet the letting condition as the rental licence only allows a maximum of 91 days. I will claim the £1000 allowance on our self-assessments for this tax year, 2023-24. HOWEVER, this news causes me concern as I may have, inadvertently, made a mistake last tax year, ie 2022-23. At the "Do you need to submit a Self assessment" stage, I read on the HMRC website that I only needed to report my rental income on a Self assessment tax return if it was more than £2,500 after allowable expenses. I did not realise my property did not qualify. I have re-found this instruction under "Property you personally own": https://www.gov.uk/renting-out-a-property/paying-tax#:~:text=Property%20you%20personally%20own&text=This%20is%20your%20'property%20allowance,%C2%A32%2C500%20after%20allowable%20expenses Last tax year I calculated that my rental income was not more than £2,500 after allowable expenses, ie platform charges, housekeeping costs for the guests, accountant's charges, etc. I, therefore, did not submit a Self assessment that tax year. (It is only this foreign rental income that triggers the need for a Self assessment.) PLEASE, what do I need to do now? Thankfully, I know I do not owe tax as my employment income from that tax year was about £8000, well below my personal allowance.
Posted Tue, 24 Sep 2024 13:44:30 GMT by HMRC Admin 10 Response
Hi
As you have foreign income, you meet the criteria for completing a self assessment tax return, regardless of whether any tax is payable.  The tax return, allows you to declare all of your world-wide income and capital gains.  If you paid tax on the rental income in another country, then you may be able to claim up to 100% of the foreign tax paid.

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