Split year treatment - still has house in Spain

Can you claim split year treatment if you still have a house in Spain (which you are renting out

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New client lived and worked in Spain for many years. Returned to UK in July 2017. Bought house and started working in UK in July 2017.

Started to rent his spanish house out from July 2017 pending a sale (which hasn't happened yet).

Can he claim split year treatment so he only needs to declare his income (including spanish rents) from July 2017 on his UK tax return.

He said he thought he might have to declare his spanish rents from July 2017 in Spain too and was worried about paying tax twice but I would have thought that any tax paid in Spain (if any) could be deducted from his UK tax

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By Tim Vane
15th Jan 2019 10:17

Yes he can claim split year treatment but on the information given it will have no affect on his rental income. It would mean that any wages/salary or self employed earnings received in Spain prior to him returning to the UK would not need to be declared but in all likelihood that would not have been taxable in the uk anyway. So go ahead and claim split year but it is unlikely to make any difference. He may be able to claim foreign tax credit for tax already paid in Spain but you’ll have to do the calculations to be sure.

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