Overseas Tax Year Jan to Jan - Reconcilling to UK?

by **Friday12** on Sun Sep 06, 2009 12:29 am

Hi,

In relation to overseas tax paid on a property -

Where an overseas tax year is January to January and I fill in a local tax for this period, how can I deduct this off the tax year in the UK which runs April to April?

Do I have to get the accountant I use overseas to work out the income or loss on an April to April basis? or can I offset the overseas tax bill in the UK tax year that I pay the overseas tax bill?

Thanks

by **Peter D** on Sun Sep 06, 2009 11:34 am

Clear as mud. Tax paid on a property ????

Did you rent it out and in which country is it in and where were you residing at the time. Regards Peter

by **maths** on Mon Sep 07, 2009 12:10 pm

I assume you are renting out the property.

If the overseas tax return covers the period say 1 January 2009 to 31 December 2009 and foreign tax paid is 1200 then for the UK tax year 6 April 2009 to 5 April 2010 the foreign tax credit will be 75% of 1200 plus 25% of foreign tax paid for period 1 January 2010 to 31 December 2010.

The UK tax charge (before the offset of the foreign tax) is however based on income less expenses for the UK tax year ie 6 April to following 5 April.