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Posted Sun, 10 Oct 2021 17:46:14 GMT by Delafuma
Good evening I have some let properties in a EU country, from which I have income from the rent and also pay taxes in that country. When filling in my tax return in gov.uk web page, the section regarding Foreign income states that “If you pay tax on the arising basis and you've any income from outside the UK that you were unable to bring to the UK, because of exchange controls or a shortage of foreign currency in the overseas country, then you can claim that the un-remittable income should not be taxable in the tax year 6 April 2020 to 5 April 2021.” All incomes from rent are kept in a non-UK bank account, and no transfers are done to my UK bank account. Does this mean that this is an un-remittable income and therefore it should not be taxable in the tax year 20-21? Does this income need to be included in the tax return? In the past few years, I have been including these incomes from the rent in my tax return and deducting the taxes already paid abroad under double taxation agreement. Is that the right way to proceed? Thanks Regards
Posted Mon, 11 Oct 2021 11:36:10 GMT by HMRC Admin 10
Hi

As a UK Resident you will declare your world wide income to the UK unless you choose to claim the Remittance Basis.

You can check the link below if this may apply to you.

The remittance basis is an alternative tax treatment that’s available to individuals who are resident but not domiciled in the UK and have foreign income and gains.

Remittance basis is not available if you’re deemed domicile in the UK.

See link below for information on The Remittance Basis:

Remittance basis 2019 (HS264)                     

If you have Furnished Holiday Lettings (FHL) in the EEA you can claim any foreign tax taken off your EEA FHL income at Box 9, Other allowable Expenses  (unless you are claiming Foreign Tax Credit Relief for it on the ‘Foreign’ pages).

Thankyou.

Regards.

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