Tax credits and foreign income from property

Hi, I want to update my tax credits online to include income from property abroad (a Furnished Holiday Let in the EEA) What figure do I enter? The gross income or the gross income minus the Spanish Tax I've already paid? Thanks

Or the gross income minus deductibles?

Hi,

For tax credits, foreign income includes profits from property overseas, overseas investment, pensions, and social security income. 

The income received is ‘taxable’ in that the amount has been taxed by Spain, and as per the double taxation treaty, the UK agree not to tax the income again. 
The tax rules allowing foreign income to be taxed only when they are brought to, or remitted to the UK does not apply to tax credits, all of a tax credit claimant’s worldwide income must be taken into account, even if it is exempt for taxation purposes under the terms of a double taxation treaty. 

So you should calculate your income for tax credits to include the full amount gross, after expenses, and deduct £300 as follows:

Calculate and then add together:

• the pension income;
• the investment income;
• the property income
• the foreign income; and the notional income,

If the result of this step is £300 or less, it is treated as nil. If the result of this step is more than £300, only the excess is taken into account. Consideration may also need to be given as to whether or not you incurred any banking charges/commission in the conversion of the money into sterling.

Thank you.

 

Thank you