UK tax allowance for UK property
#1
Forum Regular
Thread Starter
Joined: Aug 2018
Posts: 295
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?
#2
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.
#3
Forum Regular
Joined: Nov 2013
Posts: 289
Re: UK tax allowance for UK property
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.
#4
Re: UK tax allowance for UK property
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.
#6
Re: UK tax allowance for UK property
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.
#7
Re: UK tax allowance for UK property
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