Taxation of UK Rental Income while working in Sweden

[robertiac1]

My son-in-law works in the UK for the UK subsiduary of a Swedish company and has the opportunity to work in Sweden at head office for up to 12 months, starting in April, where he would be paid by head office. My daughter would take unpaid leave from her UK firm, and thinks she would be able to get temporary work in Sweden. To cover their UK mortgage they will have to rent out/let out their jointly owned UK property while they are away. They do not have income from savings or dividends. There is a double taxation agreement between the UK and Sweden, but I don't really understand it. Would the rental income be taxed in the UK and would they be able to use their personal allowance to offset it?

[GlobalTaxAdviser]

Hi

Yes the rental income would be taxed in the UK and Personal allowance will be available

If your daughter and son in law are Tax resident in Sweden then Rental Income would be taxed there as well on which basis I am not sure. Please note calculation of Rental profit may differ in Sweden, You will also have to deal with different tax years and exchange rates

You will get a credit in the UK for the double tax under the tax treaty

Kind Regards

GTA

[bd6759]

You will get a credit in the UK for the double tax under the tax treaty

It's the other way around. Sweden will give credit for tax paid in UK.

[GlobalTaxAdviser]

Yes thats what I meant - sorry