Help me calculate my rental income for the 2019-2020 tax year.

[damianomigani]

I would really appreciate if anyone could help me understand my tax bill on my rental income property in London, as the situation is not totally straight forward and I am not sure.

My wife and I own a property in London, where we have lived for many years (until the end of 2018). At the end of 2018 we moved abroad (USA) and have been renting the property out to tenants.
Here is our situation:
- We were not UK residents in 2019-2020 tax year. We are EU citizens (Italy)
- The rental income was 1400 per month (16200 for the year)
- There were virtually no expenses
- The mortgage interest was about 1920 for the year
- we had no other income in the UK.

The house is in both (wife and I) name, we are also both on the rental contract as landlords and the money has been going to a shared UK bank account.
Does the tax free allowance (11500 per person) applies to us as we live abroad now and if so, do I need to divide the income between the two of us (use both allowances) or just one?

I know I will have to do the self assessment in mid 2020, but as I need to file my US taxes now and I need to declare the rental income tax I need to pay to the UK (in order to avoid double taxation), I need to understand how much money we will owe to HMRC.
Thank you in advance for your help!
Damiano

[DavidTreitel]

Damiano - From a UK perspective you each report your respective share of the rental income after expenses such as insurance, gas safety checks, agents fees, legal fees etc. At present - as EU citizens - you are each entitled to the UK personal allowance. From a US perspective, as no tax was paid to HMRC by 31 December 2019 there is no foreign tax credit to be claimed on the 2019 US income tax return. You'd still complete Schedule E, plus Forms 1116, 4562 and 8858.