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UK tax allowance for UK property

UK tax allowance for UK property

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Old Nov 26th 2018, 7:42 am
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Default UK tax allowance for UK property

Do you get the tax allowance in UK if you declare UK property ?. I m tax resident in Spain but declare UK property in UK and in spain. Does the UK allowance apply to me or is it only if you are resident in UK?
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Old Nov 26th 2018, 8:42 am
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Default Re: UK tax allowance for UK property

At the moment, if you have income that is solely taxable in UK, or taxable in UK and Spain (UK rental income falls within this bracket), then you receive your full personal UK tax allowance. There was some talk a few years ago of scrapping the UK personal tax allowance if you only had rental income to tax, but that has not yet been implemented.
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Old Nov 26th 2018, 11:48 am
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Default Re: UK tax allowance for UK property

Originally Posted by 1sexsmith
Do you get the tax allowance in UK if you declare UK property ?. I m tax resident in Spain but declare UK property in UK and in spain. Does the UK allowance apply to me or is it only if you are resident in UK?
I would be surprised if you're entitled to the full £12,500 UK personal tax allowance as a Spanish tax resident, especially as you are currently entitled to the €6000 or so Spanish tax allowance. I suspect that you'll pay the tax on your rental in the UK and this will be deducted from your Spanish tax bill.
see....
https://www.citizensadvice.org.es/wp...O-CONSIDER.pdf

https://www.gov.uk/guidance/paying-t...ndlords-abroad

https://www.gov.uk/government/public...r-tenants-nrl6

https://www.expertsforexpats.com/expat-tax/expat-tax-advice/tax-in-spain-for-expats/

https://www.gov.uk/tax-uk-income-live-abroad/taxed-twice


********EDIT********14:01 26/11/2018........ Well I'm surprised!
see https://www.gov.uk/tax-uk-income-liv...onal-allowance and https://www.gov.uk/income-tax-rates

Last edited by bolton wanderer; Nov 26th 2018 at 12:02 pm.
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Old Nov 26th 2018, 12:32 pm
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Default Re: UK tax allowance for UK property

Originally Posted by 1sexsmith
Do you get the tax allowance in UK if you declare UK property ?. I m tax resident in Spain but declare UK property in UK and in spain. Does the UK allowance apply to me or is it only if you are resident in UK?
You should end up paying tax in the UK and then offsetting against any tax payable in Spain as there is a double-taxation agreement in place. As a UK non-resident any tax due there on your rental should probably be deducted by the tenant / letting agent if you have one.
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Old Nov 26th 2018, 12:51 pm
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Default Re: UK tax allowance for UK property

Not sure if this link will help ?

http://Resident in Spain with Rental...es › uploads
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Old Nov 26th 2018, 3:02 pm
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Default Re: UK tax allowance for UK property

Originally Posted by Loafing Along
You should end up paying tax in the UK and then offsetting against any tax payable in Spain as there is a double-taxation agreement in place. As a UK non-resident any tax due there on your rental should probably be deducted by the tenant / letting agent if you have one.
If you have a letting agent you can register with HMRC to have your rent paid in full and pay the due tax with self assessment. I would not like to rely on the tenants paying over the tax deducted from their rent.
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Old Nov 26th 2018, 6:44 pm
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Default Re: UK tax allowance for UK property

Originally Posted by 1sexsmith
Do you get the tax allowance in UK if you declare UK property ?. I m tax resident in Spain but declare UK property in UK and in spain. Does the UK allowance apply to me or is it only if you are resident in UK?
From my experience:
I'm a Spanish resident / taxpayer with a rental property in the UK.

I use a UK letting agent and so HMRC permit me to receive the rental income gross but I have to do a UK tax return every year. As the income is below 12,500 I receive full UK allowance and pay no tax in the UK so it's a formality

I declare the UK rental income on my Declaración and pay the relevant tax here. The Spanish tax allowances for landlords are very generous ( 50% after other deductions ) so I would recommend this route if you are tax resident in Spain.

I hope that helps
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