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How Overseas Rental income is taxed

If you own a property abroad, or are living abroad and letting out your property at home, you won't escape a tax bill.

You're taxed on your foreign properties in the same way as you would be on any UK properties.

In short, you work out the profits for all your foreign properties as a whole by deducting any expenses from any income.

Unless you let a furnished holiday residence, you won't be able to claim capital allowances for investments against your rental income.

Instead, investments in the property count as capital expenditure, meaning they can be tallied up and offset against your capital gains bill when you come to sell the property.

You pay income tax on any profits at your normal rate.

When working out the UK tax, you normally use the exchange rate when the rent was due.

Please contact us should you need further advice or visit the Government website by clicking here.


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