Brano77

As a quick “back of a fag packet” estimate of tax due on UK house rental income would it be correct to simply take the gross rental income, deduct allowable expenses including mortgage interest and the capital repayment element, divide the answer by 2 and apply the appropriate tax rate? This assumes that the normal single,earned income and family allowance have been eaten up by other income?

Am I correct in understanding that the taxable sum is 50% of the net figure for 2012 and for previous years it has been 40%?

I have used PADRE for returns containing just pension income and interest from banks. Do things become confusing if you have to use the more detailed option when selecting the type of return to make unless ones Spanish is very good. It would be helpful if one could copy sections of the text from PADRE into a translator but this does not seem possible? In particular I am referring to the option page where you select using check boxes the elements applicable to you. Perhaps best to use a Gestor?

Fred James

Prior to the 2011 tax year you paid tax on 50% of the net income and for 2011 onwards you pay on 40% of the net income. Mortgage interest is deductible but not the capital element - that only applies to an investment (by mortgage) in your habitual home.

In PADRE you have the option to select the various parts of the declaration that apply to you. If you leave them all in it just takes longer to page through the pages that don't apply to you. The program only ever prints out the relevant pages.

If you haven't declared the UK rental before it is fairly complicated to fill in especially if your Spanish isn't up to it. It might be worth getting a Gestor to do it and then next time you will know what boxes to fill in. All the details of how to do it are in the guides that you can access from the first page of the program.

Brano77

Many thanks Fred.