UK Self Assessment Tax Return

~~Hi there, newbie to the board, so hi to everyone. Thought I would pose a bit of a general question about self assessment tax returns for those who are UK resident but who generate rental income from a Spanish property.

The HMRC advice on where to complete the relevant sections of the self assessment return are confusing to say the least. On the one hand, you're advised to use the Foreign supplementary pages of the self-assessment tax return rather than those dealing with income from property, but you're also told that income from furnished holiday lettings in the European Economic Area goes on the UK property pages. Which of the 2 do they expect you to complete if you're not domiciled in Spain but getting any income from renting?

The tricky issue for me appears to be the fact that you only appear to be able to enter any of the money you've already paid the Spanish government on the Foreign supplementary pages, but in order to do so you also have to input the income you've received, and this carries through to the final calculation of tax due. If you complete both the UK property pages and the Foreign supplementary pages it seems to me as though you're effectively entering the same amounts twice, and therefore, run the risk of overpaying tax. I just want a fairly simplistic way of recouping the £435 I've already paid the Spanish government (under the dual taxation arrangements) on the self assessment return, so wondered if anyone had found a way through this particular problem. Any advice very gratefully received.

Best wishes,

Mark

I would advise you to contact HMRC, in writing, and put the query to them direct. You should then receive a written reply that you can keep for yor records in the event of any subsequent queries by HMRC.

I think you may find that many people do not declare the full tax due on rentals and rely on the 210 forms to pay the Spanish tax for non residents.

When I did it myself on paper, I used the supplementary forms. My accountant has taken over this job electronically now fills out the SA105 form (UK property) ,

Mark

Hello

We rent property in the UK and also rent our Spanish property as a holiday let. A few years ago they changed it so you could not offset any Spanish costs against UK profit so I spoke to them to clarify what I had to do. You declare the Spanish property on the UK pages and you can also declare tax paid in Spain on the UK pages. I cannot remember exactly which section in the UK pages you do this on and as I am in Spain for the winter but I save my self assessment on my UK laptop I cannot look it up to tell you where. If you go through that section and click on the ? alongside each part it will give you more info but if you still can't find it you will have to call them and be patient waiting in a queue till they answer then ask the question as to where to declare the tax paid.

Sorry I can't be of more help

Hi Alexa,

Very interested by your post as I'm in a similar position.  I queried this question with the accountant I used to use as it would be goodl if could offset the Spanish costs against the UK lettings.  But they said "no" cannot be done - we have to declare the Spanish income in Spain and UK income in UK etc.

The Spanish property does not let too well - other than in the summer when we want to use it.  So we gave up renting it out.  Are you saying that as a UK tax payer I can include the Spanish property on my UK tax return?  As prices are so good we are thinking of buying in Spain to rent and this would make the tax process a whole lot easier. 

I hate the annual tax form hassle, but I have to do it the UK anyway so that would be great news.

Appreciate your further comments.

Hello

You will still have to do the 210 in Spain but then any tax you pay on that can be put on your UK self assesssment so you don't pay twice. If I remember correctly off the top of my head when you fill in the UK part it asks you if your holiday let is abroad then you put all the details for that under UK but it is separated from any UK rentals as you cannot offset the costs anymore. You can claim for all costs though including things like mortgage interest, electric, house insurance, cleaning and either furnishing etc when buying or replacement costs (not both) providing you have rentals of a minimum of 105 days. It also has to be available for rent for ? 210 days. You have to divide the costs so you don't claim for when you or family are using it yourselves, i.e. if you costs add up to £1,200 and you use it for one month you can only claim £1,100. 

Hope this helps

Hi Alexa - thanks very much for yours - appreciate the information.