HMRC Admin 8
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Re: Confused re foreign income reporting- please help
Hi,
Yes, the personal savings allowances applies to the total interest from UK and abroad. the foreign interest should be declared on the foreign section of the tax return.
Non reporting funds are treated as 'offshore income gains' and are subject to income tax and not capital gains tax.
The gains should be entered in box 41 of SA106 and in the box marked "Other overseas income and gains" on the online return. As it is not a capital
gain. tick no
Thankyou. -
Re:Foreign investment income for dual citizen
Hi,
As UK resident you need to declare your worldwide income.
You can claim foreign tax credit relief for the US tax to reduce your UK bill. see further guidance at:
Tax on foreign income
Thankyou. -
Re:Mortgage interests of a non-residential property
Hi,
Mortgage interest is an allowable expense against non-residential rental income as it is with a UK rental business.
However, this should be set against any rental profits in the year those profits arose.
Further information is available at:
PIM2052
Thankyou. -
Re:Tax return from jointly owned rental property
Hi,
If the rental property in question is jointly owned by a husband/wife or civil partners then the default method for dividing the rental income is 50/50.I
If you require a different percentage split then you will be required to complete a Form 17 and obtain a Deed of Trust in respect of the property.
If the property is just jointly owned by any other person then the percentage split of the rental income does not require a Form 17/Deed of Trust.
Thankyou. -
Re:Transferring Rental Income to Wife (Deed of Assignment)
Hi,
We can confirm that a Deed of Assignment would be accepted by HMRC.
Thankyou. -
Re: FHL - Trading Status and VAT
Hi,
As you have stated if the income you receive from a FHL is above £85000 in a year then would need to register and pay VAT.
You would still declare the actual income from the FHL within the UK Property pages of the self assessment tax return.
Thankyou. -
Re:Property Income over £1,000, Casual income under £1,000
Hi,
As a non UK resident who is in receipt of UK property income then you are required to complete a UK self assessment tax retutrn to declare the income from the UK property.
However, as a non UK resident you are not required to include your casual earnings from Australia on your UK tax return.
This income would be declared to the Australian tax authorities and any tax due would be paid in Australia.
Thankyou. -
Re:Finance charge and property tax paid abroad
Hi,
You would be entitled to claim the monthly bank charges as an allowable expense as long as the charges are wholly and exclusively for the purposes of renting out the property.
In respect of the foreign tax paid on your foreign rental property you are correct in saying that you would need to apportion the foreign tax paid to coincide with the UK tax year.
If you do not know how much foreign tax relates to the period from 1 January 2023 to 5 April 2023 then you would estimate the 2022-23 foreign tax and amend the return as soon as possible as you have stated.
Thankyou. -
Re:Rent a room income below taxable limit - enter into self-assessment or not?
Hi,
It is usually the date the payment was received (if using cash basis) therefore in your scenario this would be the 2022-23 tax year.
More information can be found in Property Income Manual PIM1094
Thankyou. -
Re:How to share the ownership of an existing property with spouse
Hi,
If you decide to transfer 50% ownership to your wife they would also become a 50% legal owner of that property and would have to declare their share of rental income/expenses to HMRC.
Information about property held jointly by a married couple and using a Deed of Trust can be found below:
TSEM9800
A Deed of Trust is a legal document that can be used when making the transfer.
Thankyou.