Taxation of Overseas Property Income
Where letting income or profits on sale have already been taxed in another country then double tax relief may be available to set against the UK tax liability, but that may not be assumed.
The relevant agreement must be carefully studied and applied, with the taxable income or gains returned to the Inland Revenue in full but together with a claim for relief to be given.
The furnished holiday letting regime is not extended to overseas holiday properties, which are taxed on the same basis as furnished lettings.
It is often not understood by UK taxpayers that most are liable to tax on all their income and gains, wherever arising, including from holiday properties owned and let abroad. And that they remain liable whether those profits are brought back to the UK or are simply retained in overseas bank accounts; as is the interest received on such bank accounts.
Current Inland Revenue scrutiny of overseas bank account holders has been widely reported in the press and a separate taskforce has been set up to enquire into the tax affairs of such account holders.
If you have a concern, or wish us to deal with these matters for you, then either contact us or complete our property taxation enquiry form.
