I have no experience of claiming relief under DTAs. I have a client, a dual UK/S African national, who went to work in Italy in 2014. I have completed returns for the last few years to show rental income on their UK property. I have shown him as non-resident by virtue of automatic overseas test 3, working full-time abroad. However, in 2017/18, his wife came back to live in the UK family home. Since August 2017, he has worked 5 days a week in Rome and come back to the UK at weekends. His total number of days and work days in the UK in the tax year is too high to claim non-residence and, by virtue of the ties test, he is resident in the UK. He is also resident in Italy and being paid a salary there and paying Italian tax.
I have looked at the DTA and the various tie-break questions. From the example on the HMRC helpsheet and other information I have found online, it looks like the UK is his centre of vital interests but, even if it isn't, he is a UK national and, ultimately, that will make him UK resident under the treaty.
My question is - how does he get relief for the Italian tax he has paid? Does he apply to the Italian tax authorities or can I claim foreign tax credit relief on his UK tax return for Italian tax on his employment income? I have never come across this situation before and am flummoxed.
I should be very grateful if anyone could explain this to me.
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