Tax on foreign property

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Tax on foreign property

    A friend of mine has a flat with no mortgage that she has been letting out in Israel for the last 3 yrs. She has paid the local lettings tax and is a UK resident.

    The rental income has stayed in a bank in Israel. Is she due to pay UK income Tax? If so, at what point? When the money is repatriated or is it already due?

    Thanks

    #2
    As a UK resident she is due to pay tax on her world-wide income & gains, whether repatriated or not - unless she is non-uk domiciled and opts for the "remittance" basis.

    When was the flat first let?

    Comment


      #3
      Thanks for your help. The flat was first let in October 2012.

      Comment


        #4
        She could have a liability for the 2 tax years 2012-13 and 2013-14 if there are profits. Interest and penalties may apply also.

        She should be entitled to a credit for any Israeli tax paid. But she will need to take into consideration the different tax year end of 5 April (UK) and 31 December (Israel) and forex (foreign exchange) differences.

        Comment


          #5
          That's great, thanks.

          Comment

          Latest Activity

          Collapse

          • Rent 2 Rent Tax Return
            by dhoops97
            Hi,

            I'm currently receiving the rental income for my dads properties. I'm currently fully managing the properties for him and the tenants are paying the rent into my account. Once I receive the rent, I pay my dad a fixed amount and I keep the rest. Is this legal? And if so, do I pay tax...
            03-08-2021, 14:24 PM
          • Reply to Rent 2 Rent Tax Return
            by dhoops97
            This is really helpful. My dad has changed the tenancy agreement and named me as landlord, so all payments are made to me. Therefore, all I need to do is declare all the income in the year as income and any payments to my dad, as expenses?

            Also, does this need to be in writing. At the moment...
            03-08-2021, 16:32 PM
          • Reply to Rent 2 Rent Tax Return
            by jpkeates
            It's legal.

            If you're named as the landlord on the tenancy agreements, your business is rent to rent.
            The amount you pay your father is a business expense, so you'll end up paying tax on the profit, but you need to declare the full amount as income and the payment to your father as...
            03-08-2021, 14:44 PM
          • HMRC Section 36 notice
            by KILOCHARLIE
            Wondering if anyone has any experience with one of these please?

            I received a letter from HMRC a few months ago stating they were investigating my property affairs. I was told I could provide documentation regarding it to help but if I didn’t wish then they would complete the check on...
            02-08-2021, 08:50 AM
          • Reply to HMRC Section 36 notice
            by Neelix
            If you were unemployed and receiving benefits and didn’t tell them you may need to brace yourself for contact from the DWP too...
            03-08-2021, 10:01 AM
          • Advice for DoT 100/0 or 99/1 is there a beneficial difference?
            by spikeg33
            I would appreciate some advice on getting our one rental property transferred into my beneficial interest as I have recently retired and now have the whole of my tax allowance to use against the rental income. I have researched and researched but would like some clarification about what to do . At present...
            02-08-2021, 14:07 PM
          • Reply to Advice for DoT 100/0 or 99/1 is there a beneficial difference?
            by spikeg33
            I know it’s 1% difference but was really asking what the legal implications are of either transferring it into 100/0 or 99/1. I’m not an expert in this field in any way shape or form and am merely asking for advice....
            03-08-2021, 09:10 AM
          • Reply to Advice for DoT 100/0 or 99/1 is there a beneficial difference?
            by theartfullodger
            Difference between 100:0 & 99:1?? 1%.
            03-08-2021, 09:02 AM
          • Reply to Advice for DoT 100/0 or 99/1 is there a beneficial difference?
            by spikeg33
            Thank you jpkeates for your advice. I will now proceed with 99/1 and happy that you have clarified the situation for me....
            03-08-2021, 08:51 AM
          • Reply to HMRC Section 36 notice
            by Section20z
            In your shoes I think I would be asking for a personal interview (maybe on Zoom these days) so you can find out exactly what they require. In my experience I have always found them reasonable and helpful and you can always ask for a supportive friend to also be present if you're nervous.
            Council...
            03-08-2021, 08:06 AM
          Working...
          X