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Tax returns for UK rental

Tax returns for UK rental

Old Sep 24th 2017, 9:36 pm
  #1  
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Post Tax returns for UK rental

I am doing my tax returns for a UK Rental.
How does the fact that i have worked in the USA affect my Tax returns.
My tax year pertains to April 2016-17 and i began work in the USA in Jan 2017
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Old Sep 25th 2017, 4:09 pm
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Default Re: Tax returns for UK rental

Hello Dela,
A couple of questions:
i) i assume this is your UK tax return you are talking about?
ii) i assume you have moved over to the US and are now tax resident here?

I believe (and i am no tax expert) that your US income/residency won't affect your UK tax due on your UK tax return. You declare it and fill it out as normal (ie rental income received minus valid expenses). You will have to complete the residency portion of the tax return as well. Any income up to your personal allowance will be tax free in the UK.

You will also need to declare your UK rental income on your US tax return but you must include depreciation on your house as part of your expenses. You can make an allowance for the tax you may have to pay in the UK.
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Old Sep 25th 2017, 7:39 pm
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Default Re: Tax returns for UK rental

Transition years are tricky. Did you work in the UK between April and December 2016? Because all your UK income needs to be on that UK tax return.

You do not need to declare your US income on your UK tax return while you are resident in the US.

However, as IRS is interested in your worldwide income, when it comes to filling out your US 2017 tax return, you will also need to declare your UK rental income on your US tax return, as well as any tax you have paid to HMRC. The good news is that once you have made all the allowable deductions, including depreciation, any tax due to IRS will be minimal if above zero.
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Old Sep 25th 2017, 8:44 pm
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Default Re: Tax returns for UK rental

For UK rental income you still need to do your UK tax returns if you are resident in the US. Rental income is exempt from the US/UK tax treaty.
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