Does foreign property loss have to be reported?

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UK res client within SA has a foreign property that she lets out. She says there is a rental loss. Whilst recognising that (a)her DIY calculations could be wrong and there might be a profit and (b)she should take my advice and just give me the figures, nevertheless: is it compulsory to report a rental loss?

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By Tim Vane
15th Nov 2017 17:03

Has she received a notice to file a tax return? If so, I would suggest that the answer is yes, since the prescribed return format requires the information.

If she has not received a notice to file a tax return and no tax is due then I suppose that she has no obligation to report the loss.

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Replying to Tim Vane:
Red Leader
By Red Leader
15th Nov 2017 17:18

Yes, received notice to file.

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Red Leader
By Red Leader
15th Nov 2017 18:53

Some further thoughts and background.

She is UK res but non-dom, resident here for the last 4 years. As the foreign income is less than £2,000, I think I can apply the automatic remittance basis. As there is no income but a loss, that is therefore <£2k and so automatically excepted from the arising basis.

Am I right?

I'm still going to ask for some outline figures for my records.

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By Wanderer
15th Nov 2017 19:00

I would tend to report it anyway. We seem to be getting more & more HMRC enquiries about undisclosed overseas income that reporting it now may save justifying the non reporting in the future.

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