Adjusted Net Income and Foreign Income

[Hacel]

Hi all and apologies if this is in the wrong place. I'm looking for a quick bit of advice.

Gross PAYE income ~41k.
Foreign Income of ~15k from property in a jointly held family business, ~4k of tax has been paid on this and there is a double-taxation agreement in place.
In receipt of child benefit.

Clearly the combined income sneaks me over the 50k trigger point, although it is borderline once pension and personal property allowance is accounted for.

I note that 'adjusted net income' does not give a definitive list of what counts as taxable income and did hear that foreign income may not be counted (I found an article from a number of years ago that stated it was UK income only but cannot for the life of me find it again).

Can anyone confirm whether this is the case?

[robbob]

I can't find anything that would help- i can confirm that on my tax program when you enter salary and overseas rental it calculates the child benefit tax charge as in the same manner as would be done for uk income - so i would guess you are out of luck in this regard unless for some strange reason the income wasn't taxable in the uk in the first place.


Another interesting question is if the overseas tax credit can be used against the high income child benefit charge presuming it applies? - i don't think that would help you though anyway as it looks like your marginal rate of tax alone is higher than the overseas credit rate.

[maths]

More Robbob scene's than mine but nowhere in the legislation does foreign income appear to be excluded.

[Hacel]

Thanks both for the response.

Fortunately after pension contributions it works out this year but is unlikely to next year.

As an interesting aside I had issues with the FTCR form which this year does not match with the numbers given on the self assessment website. Various references do not match up with the 2018 form (TC34 is not used on the form and TCs 102 through 10x should be 112 through 10x). The 2017 form also has issues and the 2016 form matches the closest.

As a result I gave HMRC a call and was given the advice to ignore the form, go through without claiming any FTCR and use the lowest of foreign tax paid or additional UK tax due for the FTCR value. He advised this was the best route if you only had one property/ property group to claim for. He wasn't particularly interested in my attempt to report an issue with the form and kept pushing that process.