rental income abroad which is not repatriated - where taxed?

[robertmlaws]

Please can someone advise me?

I am a UK cityzen and a UK resident. If I buy a property aboard
(outside the EU in fact) and let it, but accumulate the rental income
in a bank account abroad and do not repatriate the money to the UK, is
the income subject to UK tax?

thank you,

Robert

 

[Doug Ramage]

Please can someone advise me?

I am a UK cityzen and a UK resident. If I buy a property aboard
(outside the EU in fact) and let it, but accumulate the rental income
in a bank account abroad and do not repatriate the money to the UK, is
the income subject to UK tax?

thank you,

Robert

Yes, assuming you are UK domiciled.

 

[robertmlaws]

Thank you Doug.

I assume there would be UK Capital Gains Tax as well.

Robert

 

[Doug Ramage]

Thank you Doug.

I assume there would be UK Capital Gains Tax as well.

Robert

Very possibly. There is likely to be a potential tax charge also in the
jurisdiction of where the property is situated. You may need to consult the
relevant Tax Treaty (if any). If none,the UK should give unilateral tax
relief for any foreign tax paid (but no refund).

Be wary of forming a company to hold the property to avoid any
inheritance/succession tax in the foreign country, as this could trigger UK
income tax on any director or shadow director.

Professional advice essential, IMHO.