Foreign Income

tinystar Registered Posts: 2 New contributor 🐸
Hi everyone,

I have a sole trader client who is UK resident and has a property in an EU country that he rents out since 1st August 2019.(not a holiday let) He submitted a tax return in his home country and paid tax there after his rental income. The total income between Aug and March is £1,079.78 equivalent and there is a flat rate 10% expenses he claims so his profit was £971.80 He doesn't bring any of this money to the UK.
I keep running circles to figure out where and how to put this on his SA.

I'd very much appreciate it if someone could help me with this.
Many thanks.


  • Buhir_the_Bookkeeper
    Buhir_the_Bookkeeper Registered Posts: 36 Regular contributor ⭐ 😼 ⭐
    HI for tax advice on foreign let property;

    whats the country in the EU first of all.

    Then look up the double taxation treaty online between the country in question and the UK. And if he needs to decare it in the uk based on te DT treaty please do so as below.

    Probably foreign income/income from land and property abroad page.

    You also need to check his tax return for the foreign country to see if nothing else is on it.

    I would also check with hmrc helpline & confirm the query 0300 200 3300

    finally, it may be that as the profit is under 1k it does not need to be declared but again check and confirm with HMRC.

    Happy to have a chat if you want to as local foreign property tax advisors in Cardiff.
  • tinystar
    tinystar Registered Posts: 2 New contributor 🐸
    edited January 2021
    Hi Buhir_the_Bookkeeper,

    Thanks for your comment.
    It turned out that the remmittance basis automatically applys in this case as the client is not domiciled and the income was under £2000.
  • Jagz1234
    Jagz1234 Registered Posts: 13
    For the remittance basis to apply he must be non uk domicile this is subject to the FDR and deemed domicile 15/20 rule
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