Tax on Uk rental income
#1
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Joined: Oct 2009
Posts: 8

If we rent our property in England whilst we are renting in the States do we have to pay taxes on the UK rental income??
#2
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Joined: Jul 2009
Posts: 16
From: Philadelphia, USA








However, on the plus side you can get tax deductions for mortgage interest, insurance costs, management fees, repairs etc. as business expenses. Plus some depreciation.
H
#3
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Joined: Aug 2002
Posts: 38,864
From: Kentucky











True... but incomplete. Yes, the US taxes on all global income, but the US/UK tax treaty will prevent double taxation on income that's already been taxed in the UK. If no UK tax is paid on the income, then the US will gladly take your money! 
Ian

Ian
#5
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We managed to talk to an immigration lawyer in Tampa who suggested the quickest way was to apply for the H-1B visa through our prospective employer and then adjust status once in the US.
#6
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Ian
#7
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It is my wife who is getting an H-1B visa not me I am american and don't need visas I have my passport!
#8
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The comment that the US/UK tax treaty will prevent double taxation is correct but the UK rental income is still included in your US tax return and you can then deduct the tax paid in the UK, plus possibly take a depreciation allowance depending on how creative your accountant is. However, it is my understanding that if your country of residence is abroad, ie not in the US, then you are only liable for income generated in the US. Andrew
#9
http://britishexpats.com/forum/showthread.php?t=638830




