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Where Taxpayers and Advisers Meet

Declaring income from foreign properties

plcanonica
Posts: 10
Joined: Wed Sep 29, 2010 3:46 pm

Declaring income from foreign properties

Postby plcanonica » Wed Sep 25, 2019 3:15 pm

Hi, I inherited some flats in Switzerland from my father; they are rented out and I started receiving an income from them in July 2018. I understand I need to submit a self-assessment for the 2018-19 year, but have two questions:

1. Is there an exhaustive list somewhere of what expenses I am allowed to deduct from the income? Reading a little around the subject it looks like there are several things that are deductible in Switzerland (such as solicitors' fees) which do not seem to be deductible in the UK.
2. The Swiss tax year coincides with calendar years, so I have just submitted my tax return in Switzerland for the income there, covering the period 2018-19. All of the accounting (income/expenses) from the agency which manages the properties runs from January to December rather than April to April, and the tax I will have paid in Switzerland (which I understand can be deducted from tax due in the UK) will also cover the 2018 year, not April 18-to-April 19. Is there an accepted solution or convention about how to declare the correct amounts in the UK?

Thank you for your advice!

bd6759
Posts: 3109
Joined: Sat Feb 01, 2014 3:26 pm

Re: Declaring income from foreign properties

Postby bd6759 » Wed Sep 25, 2019 11:17 pm

All expenditure incurred solely for the purpose of the letting business is allowed as long as it is not capital expenditure.

Generally letting agents fees and repairs are allowed.

You need to apportion the letting income so that it coincides with the tax year: 9/12ths of one calendar year plus 3/12ths of the next. Tax is similarly apportioned.

plcanonica
Posts: 10
Joined: Wed Sep 29, 2010 3:46 pm

Re: Declaring income from foreign properties

Postby plcanonica » Thu Sep 26, 2019 10:47 am

Great, thank you for the information.


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