UK tax for overseas partnership firm

[DtheRed]

Hi, I am new here.

Can I get some advice on my UK tax liability.

I am UK resident, taxpayer and everything.

I am also a (silent) partner in a partnership firm overseas where all tax is paid (acquired though inheritance). I receive no salary nor draw any money. Should I be declaring this on my UK tax return? Should I be paying taxes here too?

Cheers,
D

[RMC]

1. Are you entitled to a share of partnership profits?
2. Do you receive interest on your investment?
3. What exactly do you get from the partnership? What did your predecessor get?

[DtheRed]

Hi, thanks for replying!

1. Are you entitled to a share of partnership profits?

I am, but there are no profits from its core business. The firm has 1 sole purpose - it owns and lets a property. A property which lies unoccupied (for which it still pays taxes). I acquired a share in the firm though inheritance 8 years ago, but the firm's property which generates its sole income has been unoccupied for the last 5 years generating no income. Illegally occupied for the 2 years prior. Only rent was really the first year of about £5,000.

2. Do you receive interest on your investment?
Historic profits in the bank do generate interest but these are kept within the firms own bank accounts (i do not have access to the bank account). They will be distributed to me when the firm is sold but I don't think there is much.

3. What exactly do you get from the partnership? What did your predecessor get?
I will benefit when the property (via sale of partnership firm) are sold. I will get 1/3 share after taxes (for which i understand I might be liable to CGT and certainly taxed on interest generated by the lump sum gained). Looking for a buyer is taking a while as the market crashed after 2008 and we are in litigation claiming rent from the last tenants.

I hope this is clear
Thanks