I am working with a client who is a UK resident and has rental income from a property she jointly owns in India. I believe she needs to declare the income in India and pay the relevant tax then utilise the dtta when declaring the income on her UK tax return.
Can anyone advise me of the best way to go about doing this? She almost certainly doesn't have the correct registration in India and doesn't want to be involved in sorting it out. I am reticent to start learning about the Indian personal tax system for one smallish client. I am tempted to use a specialist firm in the UK for support so if anyone has any recommendations I'd be grateful!
The only work around I can see is for her joint owner to declare and pay the tax then pay her net but there are obvious implications with her UK tax position.
Can anyone provide any thoughts/advice?
TIA, Helen
Replies (7)
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You are not appointed to help her with her worldwide affairs I hope
Your only responsibility is to ensure the full Indian income and any expenses which are allowable under uk rules are claimed on the foreign section of a SA return. You can tell her that if she pays any tax in India you will look into dtr at that time
it seems that you know what you need to do but are looking for ways around this.
she needs to declare in India & UK & claim appropriate double taxation relief.
If you suspect your client has unpaid tax in India you may want to speak with your MLRO as this might be reportable. Any UK tax liability will depend on whether your client is paying UK tax on the arising or remittance basis.
I would send her this link that she may get caught sooner or later.
https://www.gov.uk/guidance/worldwide-disclosure-facility-make-a-disclosure
If you don't know, it's definitely time to speak to someone who has the expertise with Indian taxes. Perhaps you could split your fees to keep the client happy.