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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4803
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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There I want to ask a question around paying tax in

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Hello there
I want to ask a question around paying tax in the UK for foreign income.
I live and work full time in England, however I have property in Greece (2 flats that I am renting). In England I am taxed via the PAYE system but due to the Greek income I am filling in my yearly self-assessment. I am of course taxed in both countries.
What I fail to understand is why I am always losing out. In the UK I am paying extra tax due to the income from Greece although I do not transfer that money to the UK. Essentially the HMRC are making money from modest income I have in a foreign, albeit European, country.
My question is; how exactly is this right and fair? I cannot understand it.
Thank you
best wishes
Jason
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you fo ryour question...Normally, a UK resident for tax purposes pays tax on earnings worldwide.In your case, you would be taxed on earnings from UK source and also rental income from property in Greece.What you should do is to claim foreign tax credit relief against any tax suffered in Greece on your rental income there. This is done by completing supplementary pages SA106-Foreign of your tax return. Under double taxation agreement between the UK and Greece, your income from a same source should not be taxed twice.More information on how to report and claim foreign tax credit relief can be found herehttps://www.gov.uk/government/publications/self-assessment-foreign-sa106 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.
Customer: replied 1 year ago.
thank you for your answer. I am afraid, I remain confused though.
My accountant is already filling in the sa106 pages, but as my total income here and from Greece adds up I end up being taxed more in the UK. My accountant actually said to me something like 'for your Greek income this is the tax you have to pay'. I have already paid income tax in Greece though and specially as the taxes over there are horrendous.
I appreciate you have rather limited information, but is this right? HMRC calculates income there and tax I paid in Greece and they still say because the income from Greece pushes my income in the UK higher I have to pay more tax (i.e. £280 extra last year).
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.IT is your total income (above the threshold for basic rate) that is pushing you into higher rate tax. In your case it happens to be rental income from Greece.The accountant may be filling in SA106 to report foreign income, has he actually claimed foreign tax credit relief against tax suffered on that income in Greece.I hope this is helpful.
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4803
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
She is completing that too, but the numbers do not make a lot of sense to me. I guess I need to enquire.
Thank you for you help
best wishes
Jason

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