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lpl111
16-09-2013, 20:04
Hi all,

I am a uk resident who has purchased a holiday apt in Tenerife.
The apt is rented to tourists for periods throughout the year.
I have a Spanish accountant and pay Spanish taxes on the income from rental.

Do I need to declare this income to the uk tax authorities?

Thanks to anyone who is able to advise me on this matter.

Goldenmaniac
17-09-2013, 08:48
The short answer is yes, but have a look below and seek professional advice or contact the tax office in the UK to confirm YOUR actual situation.
See here: http://www.hmrc.gov.uk/manuals/dtmanual/DT17553.htm
DT17553 - Double Taxation Relief Manual: Guidance by country: Spain: Income from property

Individuals who own property in Spain and who are not resident in Spain pay Spanish income tax in respect of the deemed rental value of their Spanish property. This Spanish tax is not creditable against United Kingdom income tax liability because there is no UK tax payable in respect of the deemed Spanish income.

Where Spanish income tax is payable in respect of actual income from a Spanish property and actual rents are taxed in the United Kingdom the Spanish tax payable may be credited against the UK payable on the Spanish rental income.

The charge to Spanish capital tax in respect of the value of the property may be deducted in computing the amount of the Spanish rental income with an appropriate adjustment for private use of the Spanish property.

The Exchange of Notes concerning the taxation of time share rights referred to at DT17550 in most cases removes the liability of United Kingdom residents to Spanish tax in respect of their ownership of Spanish time shares, except where the owner is a developer or trader in time shares. Any enquiry concerning the application of the Exchange of Notes should be referred to Business International, Tax Treaty Team

chris
17-09-2013, 13:11
Hi all,

I am a uk resident who has purchased a holiday apt in Tenerife.
The apt is rented to tourists for periods throughout the year.
I have a Spanish accountant and pay Spanish taxes on the income from rental.



Do I need to declare this income to the uk tax authorities?



Thanks to anyone who is able to advise me on this matter.

Yep you have to declare income I have been to the tax office in Huddersfield this morning and they helped me fill the form in, the form you have to fill in is SA106 (Foreign) if you have any problems filling the form in PM me and I can help ( I copied the form before sending off)

cheers Chris

lpl111
18-09-2013, 09:35
Yep you have to declare income I have been to the tax office in Huddersfield this morning and they helped me fill the form in, the form you have to fill in is SA106 (Foreign) if you have any problems filling the form in PM me and I can help ( I copied the form before sending off)

cheers Chris

Thanks Chris,much appreciated.

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Thanks for the info.much appreciated.

essexeddie
21-09-2013, 18:30
Although you wont pay any tax in the UK if your paying Spanish tax, With your UK income they will lump the two together hoping the amount will take you into a higher tax band in the UK.



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