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Help with NRI rental income

how to declare Indian rental income - UK resident

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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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By Marion Hayes
23rd Sep 2016 12:38

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

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By K81
23rd Sep 2016 12:40

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.

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By David Treitel
23rd Sep 2016 13:02

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.

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By sash100
23rd Sep 2016 13:52

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

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By bwps
23rd Sep 2016 14:33

Thanks for the answers so far. I haven't been very clear in my question. She is not trying to avoid any tax liability here or in India she just wants to hand over the practical aspect of doing what needs to be done. I am not currently engaged to deal with her international affairs but she is looking to me to help her.
I'm happy with what needs to be done and how to declare it on her UK return so I guess what I'm asking is how to help her deal with the Indian declaration, is there a process or is it better to pass that part on to a specialist firm?

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Replying to bwps:
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By AlgernonB
23rd Sep 2016 15:00

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.

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By taxguru
23rd Sep 2016 15:50

Please PM me - I'll try to help

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