Taxation of UK Rental Income having worked in Sweden

[robertiac1]

A year ago I posted the scenario that my son-in-law and daughter were going to be working in Sweden for a year, and renting out their home in the UK to tenants. This has happened and they paid Swedish tax on their Swedish income. They registered for self-assessment in the UK, and got the excemption allowing the tenants *not* to deduct the UK tax.

They are now back in the UK and the Swedish self-assessment has arrived, to be filed by 2nd April 2018 - the tax year is from 1st Jan to 31st Dec. In my previous posting last year the replies I got was that the Swedish tax authorities would give them credit on the tax paid in the UK. But no UK tax has been paid yet.

Presumably the rental income has to be declared on the Swedish tax form, and in due course on the UK self-assessment.

This is a bit chicken and egg - which authority takes priority? Obviously the Swedish form has to be filed first.

I would be very grateful for any help.

Robert

[maths]

As the rental income arose whilst Swedish (but not UK) resident any UK income tax is creditable against any Swedish tax charge.

The matter you raise is a matter for Swedish tax law.

However, it seems likely that if no UK tax has actually been paid then full Swedish tax would have to be paid initially and then as and when UK tax is paid a reclaim is lodged in Sweden.

There is no doubt a time limit involved in filing for a reclaim.