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Posted Thu, 11 Jan 2024 15:46:32 GMT by Laura Perez
I am a UK resident, Spanish national, my main income from UK employment. I've got a question on foreign income, I have a property in Spain which I use as second home, I rented it for 4 weeks for €2,000 to cover expenses, the money was never sent back to the UK, and I have already paid 24% tax to the Spanish authorities. The guidance on hmrc.gov.uk states: 'Contact HM Revenue and Customs (HMRC) if your income from property rental is between £1,000 and £2,500 a year' Which I did, after 70 min on the line and the advisor speaking to supervisors and the technical department, she told me that no tax was due but I will still need to declare the income. As she was explaining how to declare the income I got cut off! I can't go through that again, so my question is: How do I declare this income that is not subject to tax? Is it through the SA106 form? if so, which boxes? I have to fill in a self assessment as I owe tax- do I fill the usual one online and then post the paper form SA106? thanks in advance!
Posted Wed, 17 Jan 2024 09:05:26 GMT by HMRC Admin 21
Hi Laura,
Thank you for your question. Any property income under £1000 is tax free because it is covered by the property income allowance. This does not need to be reported. Income over £1000 is taxable. If the rental income is between £1000 and £2500 it can be reported through PAYE and you do not have to complete a self assessment return. Income over £2500 needs to be reported in a self assessment tax return. Please refer to the following guidance for more information : Work out your rental income when you let property
Thank you.

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