Belgian/U.K. tax

Cadastral system

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I have a client who has a couple of investment residential properties in Belgium. The Belgians tax the income under the cadastral system. Taking a percentage of the value of the property based upon 1970s values and add on an indexed amount for inflation and ignore the actual rent received.

Now he is looking at becoming a tax resident in the UK. How do we need to declare this on the U.K. return?  

Would HMRC accept the calculations under the Belgian way? Or do we need to do the more traditional income less expenses?

I have trawled the web, but can’t seem to find any guidance.

would be grateful for your views. 

Replies (3)

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By Tim Vane
16th Nov 2018 08:55

You calculate based on uk property income rules i.e. rents minus allowable expenses. Claim credit for the foreign tax.

P.s rather than “trawling the web”, why not just read the legislation?

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paddle steamer
By DJKL
16th Nov 2018 13:26

Useless fact

The Cadastral System tends to be the surveying of boundaries and the plotting of these on a centrally controlled registry map- Sweden has this system and Scotland has introduced a form of it is the plotting of land boundaries on its recent(ish) Land Registry (Albeit they are so far behind issuing certificates- still waiting for circa 20 we first registered in late 2016).

Accordingly whilst I know nothing of tax in Belgium I would suspect that the name comes more from the land title and less from the form of tax being applied.

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Replying to DJKL:
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By Tax Dragon
16th Nov 2018 17:22

The form of tax may well be relevant to the credit claim Tim mentioned, so your fact might not be so useless.

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