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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13997
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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EU Citizen, UK Resident, usufruitier of a property asking

Resolved Question:

EU Citizen, UK Resident, usufruitier of a property asking about the process and cost to move all his financial obligations to UK.
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.

Hi

Thanks for your question - I am Sam and I am one of the UK tax experts here on just Answer

Then you just send this to HMRC for them to stamp and verify your residency status - which you can apply for online

Link here https://www.gov.uk/guidance/get-a-certificate-of-residence

If you also have been provided with a certificate from USA then send this to HMRC (details also within the link provided)

However usually the income would stay liable in the USA - you then declare this as foreign income to HMRC - and also claim any USA tax suffered so you are not subjected to tax twice on the same income (under the UK?USA double taxation treaty)

Let me know if I can assist further

Thanks

Sam

Customer: replied 1 year ago.
Hello Sam,you might misread my message. I am a Greek - EU Citizen and I am also a usufruitier from a small property my father owns.
Currently I have two streams of income. My employment in UK by a company and everything is processed and paid each month through BACS. The second income is the usufruct. But until now it is paid in Greece as it is my first year in UK. FYI Greece and UK have different fiscal years.What I am actually asking is this. How much do I have to pay if I move all of my financial obligations here. If the cost is greater than current I will resolve the usufruct agreement and have only one source of income through employment in a company.Let me know what you think.Kind regards,
Nikos V.
Expert:  Sam replied 1 year ago.

Hi Nikos

Thanks for your response

The same applies - you declare the income through the UK tax - as you are resident in the UK and any Greek tax you suffer you claim against the income declared - under the UK/Greek tax treaty.

The answer I provided is the same, its just the two countries between which the treaty lies that differs

The only difference might be is if the income does not enter into the UK , so have the right to be taxed on this foreign income under the remittance basis - can you clarify whether any of this money enter the UK or is spent in the UK

If you wish a UK tax calculation made, then please advsie the gross incomes from each

( the fact the fiscal years differ makes no difference - as per UK tax you will only ever declare income received between the period 06th April to following 5th April each year - so will need to apportion the Greek income IF it needs (as it comes into the UK) or you wish to declare it, to keep your tax obligations reviewed in one place.

Thanks

Sam

Customer: replied 1 year ago.
Hello Sam,the income is kept inside Greece for taxes to be paid and maintenance and it is a small amount in general. So it is not affordable to bring it in UK. Which is the best course of action in such an occation? The amount of money obtained by the renting of the property only when a resident exist is 220 Euros per month.Thank you for your help so far. I will be waiting for your next response.Nikos V.
Expert:  Sam replied 1 year ago.

Hi

Thanks for the response and additional information

As you are NOT a UK citizen then you have a choice if the income is in excess of £2000 a year

You advsie 220 euros a month which is 2640 a year - you will need to convert this to sterling

So if less than £2000 a year you do not need to declare them as there is no tax arising due to the low level BUT if more then you choose between

1) If you choose NOT to bring or spend this source of income in the UK - then you can ask for this to be excluded, by being taxed under the remittance basis in the UK. If you choose this, then it does see a loss of entitlement to UK personal allowances (the equivalent of £11,000 x 20% = £2200 and this is at the basic rate) AND after you have lived in the UK for 7 of the previous 9 years then you are charges the remittance basis charge which is £30,000 charge a year (and then 12 out of the previous 15- a charge of £50,000)

OR

2) You can claim to be taxed as any UK citizen which is known as the arising basis

This sees you declare ALL income worldwide, keep the personal tax allowances of £11,000 free income a year and then taxed at the appropriate rate bands thereafter (so next £32,000 at 20% then 40% from £43001 to £99,999 which sees a loss of personal allowances - then income in excess of £150,000 a year at 45%)

Let me know if I can assist further, or if you have all that you need, then it would be appreciated, if you could rate me for the level of service I have provided.

Thanks

Sam

Sam and 2 other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Thank you Sam, that is all! I am going to leave a good rating. Keep up the good work.
Expert:  Sam replied 1 year ago.

Thank you for the rating and feedback, much appreciated

Sam