and welcome to the site. Thank you question.Unfortunately, there is no relief interest on private residence unlike the USA, I'm afraid.Confirmation of this can be found here
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Sorry to hear that. Apologies in reply. Broadband went down. Must be snow on airways. Just one final query. I pay tax in US at 8% do I claim all the tax I paid on my US salary as Foreign Tax Credit relief and insert the tax paid figure in box 2 of the foreign income part of my tax return.
Flora, thank you reply and welcome back.You claim foreign tax credit relief against foreign tax paid.You don't have to work out the FTCR yourself.You should complete the section "Foreign tax paid on employment, self-employment and other income" on SA106 Page F6.More information on this can be found here
When I don't insert a figure at 2 and just insert my income and tax paid and tick x to claim at 30-32 I appear to owe the tax man a sum equal to the tax I have already paid in US. There does not appear to be a calculation made when I look at summary. When I insert the tax paid in 2 as the FTCR I don't owe any. My tax is paid and taken at source from my UK salary.
Had a look at form-designed by a sadist I think
I just have salary income and tax paid and no idea which boxes they go in.
Flora, thank you reply.This is what I would do....Complete - Employment pages UK salary and US salary. - section dealing with foreign tax paid on employment (SA106 page F6 of what to be provided).. state values in GBP and not USD- Any other information box (on page TR7) and notify that foreign income is shown within employment pages.I hope this is helpful.
I have done that leaving Foreign Tax Credit Relief box at 2 vacant. Comes out showing I owe tax equivalent to what I paid as tax in US. Self assessment does not appear to give me any credit so appears I am paying tax twice.??
So suspect I just have to pay the tax man. ??
But it looks like I am paying twice.?
Flora, thank you reply.It looks like you are paying twice because of the big differential in income tax rates.. 20% in UK and 8% in US.If you had paid income tax at 20% in the US then there would be no further tax to pay to UK authorties under Double Tax Agreement between the two countries.Under DTA you don't pay tax twice on the same income.I hope this is helpful.