Rental income from furnished property in the EU

MarieNoelle
MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
Hi,
I have 2 questions regarding rental income for a self assessment tax return:

1. The property is a furnished property in France rented out occasionally in the summer. It doesn't fall into the category of a Furnished holiday let (period of availability under 140 days and actual let under 70 days). Could someone confirm whether I need to fill in the foreign pages - income from land and property abroad (and then calculate income/expenses/10% w&t allowance)?

2.The property is jointly owned - at which stage of my computations do I show this, ie do I divide by 2 all the way or just when I reach Box 27 taxable profit for the year (deducting 50% of the loss carried over from the previous year)?

Any advice would be appreciated!
Thanks
MN

Comments

  • reader
    reader MAAT, AAT Licensed Accountant Posts: 1,037
    Hi,
    I have 2 questions regarding rental income for a self assessment tax return:

    1. The property is a furnished property in France rented out occasionally in the summer. It doesn't fall into the category of a Furnished holiday let (period of availability under 140 days and actual let under 70 days). Could someone confirm whether I need to fill in the foreign pages - income from land and property abroad (and then calculate income/expenses/10% w&t allowance)?

    2.The property is jointly owned - at which stage of my computations do I show this, ie do I divide by 2 all the way or just when I reach Box 27 taxable profit for the year (deducting 50% of the loss carried over from the previous year)?

    Any advice would be appreciated!
    Thanks
    MN

    I can't see anything in the leg that would prevent you from using w&t on a foreign property:
    http://www.legislation.gov.uk/uksi/2011/1037/article/11/made?view=plain

    I've had a look at the HMRC website and it appears that Foreign pages F 4 and F 5 are for foreign property income.

    You can insert a figure for w&t in Foreign page F 5 in box 23.

    Regarding joint ownership, I would probably just divide by 2 all the way down and state in the white space that only the income and expenditure that relates to the individual tax payer has been declared. There would be no understatement of tax so I can't see a problem with this.
  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Thank you very much Reader, that's very helpful.:001_smile:
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