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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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there we have a rental property in France on which we

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there
we have a rental property in France on which we submit a tax return in France. We are completing our uk tax return - do we have to declare this income - how does it work?
Thanks
Julia
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
and welcome to the site. Thank you question.

Please advise -
Are you UK national and UK resident purposes?

Many thanks
Customer: replied 2 years ago.

yes we are uk national and uk resident - we made a profit but on the french tax return we did not get taxed because they allow ...

thanks

Expert:  taxadvisor.uk replied 2 years ago.
Julia, thank you reply.

You should declare the rental income and expenses, excluding depreciation, in your UK tax return as you are taxed on worldwide income and gains. You reprt property profits by completing supplementary pages SA105.

Unfortunately depreciation is not an allowable expense when computing profit profits in the UK.

Had you suffered any tax in France you could claim foreign tax credit relief against UK tax.

I hope this is helpful and answers your question.
Customer: replied 2 years ago.

ah, ok - that is bad news.

how does this relate to the below:

'In general, under the terms of most double taxation treaties, rental income is liable to taxation in the country where it is earned.'

Expert:  taxadvisor.uk replied 2 years ago.
Julia, thank you reply.

A slight correction, it is supplementary pages SA106 and not SA105.. humble apologies.

More information on taxation of income from land and property abroad can be found here..look at FN12
http://www.hmrc.gov.uk/worksheets/2010/sa106-notes.pdf


I hope this is helpful and answers your question.
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 2 years ago.
I thank you my answer.

Best wishes.

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