HMRC Admin 8
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Re:Rental income from a jointly owned property in France
Hi,
The profits or losses from an overseas property business are computed in the same way as a UK rental business.
Form 17 and a Declaration of Trust will be required in order for the 50/50 to not be applied:
TSEM9842 - Property held jointly by married couples or civil partners: Form 17 rule: introduction
Thank you. -
Re:From what Tax date is the 50/50 taxation applied between spouses
Hi,
Income from property held jointly by married couples and civil partners is treated as beneficially owned by the individuals in equal shares under ITA/S836. Consequently you are taxable on the income 50/50.This rule applies even you own the property in unequal shares.
This will be from the date you legally owned part of that property not the date that you were married or from the start of the relevant tax year.
You can receive the rental income in shares other than 50/50 if you complete a Form 17.
Thank you. -
Re:Free rent to for a relative?
Hi,
How much rent your charge if any is up to you.
Thank you. -
Re:Beneficial interest implications for bank account
Hi,
A Form 17 can only be used when a property is held in joint names. It is not clear if your property is in joint names or you have sole legal ownership. If it is in joint names then it is up to you/partner what bank account or type of bank account you want to use for rental income purposes;
HMRC do not advise or comment on this.
If you have sole legal ownership and the mortgage is paid by you then mortgage relief can only be claimed by you - your partner would not be able to claim this so in effect as you hold 0% beneficial interest no relief would be able to be claimed.
More information can be found:
TSEM9800 - Property held jointly by married couples or civil partners: contents
Thank you. -
Re:Declaration of Trust for property income
Hi,
Information concerning the splitting of jointly held property can be found at:
PIM1030 - Introduction: jointly owned property & partnerships
Basically, if the husband owns 100% of the property, the only way for the income to be split 50/50 between husband and wife is when 50% of the property is transferred to the wife under a Deed and becomes a beneficial owner.
Furthermore, please for properties owned by married couples, follow the guidance at:
TSEM9800 - Property held jointly by married couples or civil partners: contents
With regards to tax relief for residential landlords in respect finance costs:
Tax relief for residential landlords: how it's worked out
Thank you.
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Re:sale of shares
Hi,
The threshold you mention is in relation to UK shares.
Any gains arising from the disposal of overseas assets, no matter how much or how little; even if they are covered by the annual exempt allowance, should be declared in a self assessment tax return.
Where it is too late to amend the tax return, you should declare the capital gains in writing, sending the letter to H.M. Revenue and Customs Self Assessment BX9 1AS, even if your annual exempt allowance covers the capital gains, so that no tax is payable.
Thank you.
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Re:Handling of oversea income & tax if different from UK tax period
Hi,
You would declare your overseas income arising for the tax year 1 Jan 23 to 31 Dec 23 in a 2023 to 2024 tax return, treating it as arising from 6 April 2023 to 5 April 2024.
In this way, you use the figures for the Malaysian tax year as though they were the UK tax year, saving you from having to apportioning the income to match the UK tax year.
Thank you. -
Re:CGT on 2020 gains, carry over of 2021 losses
Hi,
You have 4 years from the end of the tax year a loss arises, to claim for losses any longer and it is too late, the losses will not be allowed.
So for losses arising in 2020 to 2021, you have until 5 April 2025 to claim losses.
You will need to do this in writing and post your claim to HM. Revenue and Customs Self Assessment BX9 1AS.
When claiming losses or declaring a capital gain, you need to provide supporting evidence, such as a spreadsheet itemising gains and losses in the tax year, along with a calculation of the gains/losses.
Losses that are allowed, can be carried forward indefinitely and set against a future capital gain.
You should report your gain in writing to the same address. As it is too late to amend your tax return, HMRC will manually calculate the amount of underpaid tax and raise a formal assessment using current legislation for this purpse.
You will have 30 days to pay the tax from the date the tax is charged. Penalties and interest will be applied against the outstanding tax charged by this assessment once the 30 days have passed.
Interest is charged by law and is 2.5% above the Bank of England base rate. There is a calculator to help estimate your penalties at:
Self Assessment tax returns
Thank you.