Foreign Income Tax rules, where can I find learning materials?

ALangALang Posts: 2MAAT, AAT Licensed Accountant
in Tax
I have a client who had property in Australia and has since sold it (it's a rather long and complex case). Does anyone have any idea where I can find reading/learning materials to do with Foreign Tax income and the current rules on what to do with it and on filling in the foreign tax pages of a tax return? HMRC are offering conflicting advice on the subject. I am taking this as a great learning opportunity for foreign tax but it seems pretty hard to come by clear and concise information on it. Any help in the right direction would be appreciated.

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderPosts: 1,461Moderator, MAAT, AAT Licensed Accountant
    edited May 15
    Hi
    assuming the individual is a UK resident, you would need to determine whether he is UK domiciled or not as different rules apply on foreign income or gains.

    The double tax treaties are usually a good place to start to determine which country as primary taxing rights.
    The international manual is also a good source of information.
    https://www.gov.uk/hmrc-internal-manuals/international-manual

    It can be a very complex area so specialist advice may be the right way to deal with this if you haven't got the experience. If you are a licensed member I would suggest you use the Tax helpline once you have done some research for confirmation.
    ALang
  • ALangALang Posts: 2MAAT, AAT Licensed Accountant
    Thanks for the reply :)

    He is resident but not domiciled in the UK, which is making it quite a complex case to work out who gets what in regards to Tax.

    I was hoping someone might know some kind of book/manual etc (other than the HMRC guidance manuals) which helps to explain things a bit better. It's not something I've had much dealing which is why I am hoping to broaden my experience on the subject. My go to is usually the HMRC manuals as they do usually answer any queries, but with it being a bit complex, I'm struggling to find what I need there.
  • RyanMIPRyanMIP LincolnshirePosts: 50Registered
    As a UK resident, your client will be taxable on worldwide gains.

    As a non-UK domiciliary, the remittance basis may be in point (either automatically or by election). Whether this is an advisable election to make (if relevant) is a complex decision.

    Article 13 of the UK/Australian double taxation convention does not prevent the UK having taxing rights on the non-UK situs property, hence the UK gain will be computed and taxed (subject to the RB, above) using the ‘usual’ computational rules. Be careful to ensure you are using the appropriate exchange rates.

    A credit for any Australian tax paid on the disposal is given against UK tax under Article 22 of the convention up to the amount of UK tax arising thereon in isolation.

    To learn about the subject, I would recommend you do the CTA qualification followed by the ADIT qualification.
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderPosts: 1,461Moderator, MAAT, AAT Licensed Accountant
    RyanMIP said:


    To learn about the subject, I would recommend you do the CTA qualification followed by the ADIT qualification.

    This made me chuckle 😊
    RyanMIP
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