massi

Thank you...that's what I was thinking...

Hi have an EEA Furnished. It is in the first year and it made a loss. However, Italy witheld 21% tax on the gross income. I therefore paid £2300 Euro of Tax in Italy. However the UK liability on the property because of the loss is 0. I have other UK tax liability greater than £2300. Can I claim £2300 tax relief as the EEA Furnished let would have not attracted any UK tax but I had to pay tax in Italy? Or I can only add the tax into the EEA Holiday let costs and de-fact reduce the loss by a smaller amount - but can't claim tax relief. ie. reduce my overall UK tax liability by £2300?

Hello, I am tax resident in the UK and I have a Furnished Holiday let in the EEA. I therefore am filling the EEA Furnished holiday lettings sections. ie. I am not completing the section on Foreign Income. However I have paid Tax on the income in the other country (Italy). I wanted to claim double taxation tax relief. Where do I enter the tax I already paid in Italy (which is rated 21% and therefore less than the tax I would need to pay in the UK). My understanding is that I would need to pay tax at the UK rate (currently at 40% for me) but as I already paid 21% in Italy I get relief for that and I would only be liable for the balance / difference in the UK. I just don't see where I can enter - in which section - the Tax paid in Italy to claim relief. Thank you for your help!