Muhammad

Thanks for the guidance. I have gone through the guidance 'Tax on Foreign Income', SA106 notes etc but couldn't find the treatment for income from partnership firm, both in the SA-100 and for claiming its tax relief. WIll it be treated similar to Dividend or differently? Thanks

Hi HMRC, I have posted my query on 9th Sep but after browsing the forum further, I realize I need to be more specific in my query, so updating the query as follows: I live in the UK, domiciled here and full time employed in the UK. Back in Pakistan, I have a partnership/share in a firm (Association of Persons). The income from partnership is taxed in Pakistan. The tax paid by the firm is treated as tax paid by the partner and there is no further tax liability unless tax band changes due to some other income. In addition I have some rental income from some property I had before moving to the UK. I am expecting my foreign income to be little over £2000. I understand now that all that income is taxable in the UK and need to be reported. How to report that foreign income in my Self Assessment? Will it be considered as Self-employed income? What about the tax paid in Pakistan while UK has a Double Taxation Agreement with the UK, how much tax relief in this scenrio I am eligible for? Furthermore, I am shareholder and Director of small business (Ltd company) in the UK dealing in software/web hosting etc. This business incurred loss and no salary or dividend from this business. I am mainly confused about the income from partnership (my share) and the rental income and its treatment under DTA. Any guidance will be much apprecitaed.

Hi HMRC, I have a similar scenario but my foreign income is from a partnership in business (association of partners, not a limited company), will it be treated similarly as self-employed using SA103F or differently? Also, in the other country, the tax is paid by the partnership firm but no further tax liabilty on the individual unless tax band changes due to income level. Can I claim the tax relief against the overseas tax paid (pro-rated to my share) by the firm? Will there be any tax relief since both the countries have a Double Tax Agreement? Many thanks