Tax on foreign property

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    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?


    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?


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


        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.


          That's great, thanks.


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