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My question is are you entitled for personal allowance relief when you are paying tax for the rental income you receive by renting your holiday home
Reply from the learned members will be very much appreciated
Thanks
Vee
Posted: Thu Mar 24, 2022 11:42pm
Legendary helpful member
Hi Vee,
As you refer to renting out your Spanish "holiday home", I assume you're a UK citizen resident in the UK, not in Spain?
Prior to Brexit, UK residents with Spanish holiday homes paid a flat rate of 19% on rental income and could deduct reasonable property costs for maintenance, utilities, rental agents and legal fees. However, since Brexit, UK citizens now relegated to Third Country Nationals, are required to pay an incremental rate of up to 24% on rental income, with no allowable expenses.
As a UK resident, when you declare your Spanish rental income to HMRC, they should take into account any tax you have paid in Spain and, of course, the UK Personal Allowance will apply:
https://www.gov.uk/tax-foreign-income
Kind regards,
Kim
Posted: Fri Mar 25, 2022 11:27pm
Kimmy11 wrote on Thu Mar 24, 2022 11:42pm:
Hi Vee,
As you refer to renting out your Spanish "holiday home", I assume you're a UK citizen resident in the UK, not in Spain?
Read more...
Prior to Brexit, UK residents with Spanish holiday homes paid a flat rate of 19% on rental income and could deduct reasonable property costs for maintenance, utilities, rental agents and legal fees. However, since Brexit, UK citizens now relegated to Third Country Nationals, are required to pay an incremental rate of up to 24% on rental income, with no allowable expenses.
As a UK resident, when you declare your Spanish rental income to HMRC, they should take into account any tax you have paid in Spain and, of course, the UK Personal Allowance will apply:
https://www.gov.uk/tax-foreign-income
Kind regards,
Kim
Thank you very much Kim with a very clear reply
Vee
