I rent my property out in
Submitted by Little Sparrow on Fri, 06/02/2017 - 10:56In reply to A newbie all over again! by Annec
The property is in Italy, so
Submitted by modicasa on Wed, 06/07/2017 - 01:29In reply to A newbie all over again! by Annec
Both Little Sparrow and
Submitted by Panner on Thu, 06/08/2017 - 11:33In reply to A newbie all over again! by Annec
Both Little Sparrow and Modicasa are correct in part.The income is taxable in Italy (very few if any deductions) and an Italian tax return is needed.As a UK tax resident the income is also taxable in the UK and must be included on your UK tax return. The Italian tax is claimed as foreign tax paid and is deductible from the UK tax (up to the amount of the UK tax)Because of the lack of deductions in calculating the amount taxable in Italy the amount taxable in the UK is usually less (frequently much less). This coupled with the effective rates of tax mean that for a basic rate UK taxpayer no additional tax is likely. For a higher rate taxpayer a little additional UK tax may be payable - it all depends on the expenses for UK tax purposes.Hope that helps.Panner
Many thanks , I dread the
Submitted by Little Sparrow on Thu, 06/08/2017 - 12:33In reply to Both Little Sparrow and by Panner
Little Sparrow
Submitted by Panner on Sat, 06/10/2017 - 03:40In reply to Many thanks , I dread the by Little Sparrow
Little Sparrow Regardless of how experienced you are dealing with UK tax and filling in UK returns I suggest to get a commercialista to complete and submit the Italian tax return unless you are very fluent in Italian and understand the tax system. If the only income is the rental income then it should not cost too much - there are some international accountants that can do it (likely to be pricier) or a commercialista local to where your property is.
Many thanks for the advice, I
Submitted by Little Sparrow on Sat, 06/10/2017 - 05:04In reply to Little Sparrow by Panner
Many thanks for the advice, I have a commercialista who sorts out my council tax so I will pop and see her in July. I have all my English paper work,recipts and accounts, it's only one property the rentals are not expensive and do not make a profit ..it just helps with the cost of running the house.