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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 14278
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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In brief, here is my situation: My husband and I would like

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Hello,In brief, here is my situation:
My husband and I would like to acquire a holiday property in Spain with the view of renting it out for the majority of the year. The advice we are seeking is in order to understand how the double taxation convention would affect us here in the UK?
By the Spanish law we'll have to pay all taxed from the rental income in Spain. If we'll be still liable to declare or/and pay additional taxes in the UK?Many thanks,
Katya

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

HI

Yes you will still need to declare any rental income you earn to HMRC here in the UK but any Spanish tax you suffer you can also show on the tax return so that it is taken into account when calculating the UK tax due

And if you have paid the right amount or more tax in Spain then required for the UK then you will owe no further UK tax but if you have paid less, then you will still have a UK tax liability arising. (that's how double taxation works and within the treaty that the UK have with Spain)

If the property is in joint names, then you will have to declare each of your shares on each of your own tax returns in the UK

Thanks

Sam

Customer: replied 4 months ago.
Hi Sam, many thanks for your reply. How exactly UK income tax will be calculated taking into account different deductions level, fiscal year timing, currency, etc? What about the recent changes in relation to restriction for mortgage interests deduction in the UK - it's applicable or not? We're aware that the UK has higher income tax rate but what would be base to pay a difference - the rental income or rental income minus deduction allowed in Spain
Customer: replied 4 months ago.
Sam, I have a meeting now. Could I be back to this conversion a little bit later?
Customer: replied 4 months ago.
We could have a call as well but I prefer to have written answers first. Many thanks
Customer: replied 4 months ago.
Hi Sam, should I expect an answer from you? Many thanks

Hi

I do apologise but I run a business as well as answer questions online and I have been with clients this afternoon

You are asking many more questions than your original answer suggested - and you should really lits this as anew question or I can offer your additional Q& A time (as per Just Answer policy as your original question just asked whether ypu had to declare this income in the UK and how the double taxation agreement worked - which I have fully answered)

Let me know how you wish to proceed

Thanks

Sam

Customer: replied 4 months ago.
On website it's clearly stated that the follow-up questions can be asked (please see below)Talk 1-on-1 online
Receive the solicitor's answer and ask follow-up questions if needed.

HI

But these are new questions not follow up questions om my response

Thanks

Sam

Customer: replied 4 months ago.
The given response could be found in google withing 5 min. It's not what is expected from the tax adviser

Hi

I am sorry you feel that way - but if that was the case then I am not sure why you asked those specific questions and if you wish further assistance then I am afraid you need to pay for our time as per Just Answer - so either pay a amount befitting of all the information you need and ask all your questions initially in the opening post. Just Answer allows follow up questions certainly but your further questions had no relation to my response but then wanted new information and lot more of it - furthermore you had rated negatively - and I am not sure why ... but if you wish I will opt out and let another expert help you

Thanks

Sam

Customer: replied 4 months ago.
While I was waiting for an answer I briefly checked HMRC website and based what I read the expected answer should be something like this:
- income tax in the UK depends if you bring money in or not
- if not, the taxes shouldn't be paid until money is brought in the UK
- if yes, income tax and deductions are calculated based on UK regulation (not Spanish).
In case you're ready to confirm the above I have an answer I need.

Hi

I will answer this as a gesture of good will, however I am afraid to say that this is incorrect asthis relates to a non UK resident or a non domiciled individual of which you are neither of this

Thanks

Sam

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