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Where Taxpayers and Advisers Meet

Calculating Tax Credit Relief - UK Resident for Tax Purpose

triStar8
Posts:3
Joined:Thu May 14, 2015 10:28 pm
Calculating Tax Credit Relief - UK Resident for Tax Purpose

Postby triStar8 » Fri Sep 07, 2018 9:49 pm

Is there a quick and dirty way to calculate UK income tax liability when considering salaried income and income from investment property (both coming from Australia) in addition to rental property income (only source of UK revenue) in the UK?

I will have paid tax in Australia on all Australian income (plus UK rental income as am a tax resident there too) so have have been trying to calculate the Foreign Tax Credit relief value but am getting no where fast having spent an evening reading and trying to complete all the HMRC documents below!! (Tax is so much easier in Aus and they use language that a normal person could reasonably be expected to understand - but that's a rant for another thread).

Even once I have that value I want to double check my understanding of how to apply it.

I was hoping just to be able to use the variables:

UK Investment Property Income
UK Investment Property Deductions (inc 75% for interest on loans)
AU Income from salaried job
AU Investment Property Income
AU Investment Property Deductions (Adjusting for just 75% for interest on loans as per UK law)
AU Tax already paid to Australian Tax Office (ATO) in light of three factors above

For simplicity, I am happy to assume that I would be a UK Tax Resident for the full year - as I am just trying to get a number to help me decide if I want to return for a longer period, given my Australian job allows me to work remotely from anywhere in the world and it would be nice to see family and friends)

Any and all advice or suggestions would be welcomed!

Here's that list of everything I printed... The poor trees!!!
  • Foreign Tax Credit Working Sheet (FTCRWS)
  • SA100
  • SA106 (Foreign Income) form plus explanatory Notes (FN)
  • Tax Calculation Summary form plus explanatory Notes

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