I have a client who is American but lived in this country for decades. He has just wirtten a book in his spare time which he had self published in America. He has received a small sum for royalties in dollars that is banked in America.
I was confused as to whether the royalties go as sch D case vi or as self assessment trading income. I thought is was case vi as this is a one off authorship in which case he lost any relief on the publishing costs (which will make 2010/11 loss if included).
Rang Revenue asking for confirmation of how to deal with the royalties and expenses with an Inspector but got some-one lower down so not sure the info. is correct. She said to deal with as a trade and claim expense against the royalty income which can then be set against total income of client. Is this correct? Do I actually do anything with it at all as client also fills in US Tax Return and should this go on that alone?