Question:
I have a rental property in Budapest, and local taxes have been deducted. Am I still liable for UK tax?
Arthur Weller replies:
If you are UK resident, you are subject to UK tax on this foreign rental income; see HMRC’s Property Income Manual at PIM4702. It should be reported on the foreign supplementary pages of the self-assessment tax return. However, on that form, you can apply for tax credit relief to offset the overseas tax you have suffered against your UK tax liability.
