Client has told me he has a foreign BTL & wants to make a declaration. Decent client for whom we do the rental accounts for his UK portfolio. He has an Irish accountant who submits the Irish return for the Irish property, but he didn't know he had to declare in the UK. Asked me to calculate the tax owed and to do a let property campaign disclosure - fine.
I have assembled the income & exp using the Irish accounts figures and because of interest on the property, plus W&T which was allowable back then etc, there are losses for most years from 2004 upto 2013, then profits from 2014 to 2018. I calculated the whole position and carrying the early losses against the later profits results in an overpayment in some of the later years (due to FTCR re Irish tax paid).
If we dosclose the 14 years using let property campaign, with an overall 'overpayment', will HMRC make the repayment, or (as I expect) will they say no, "claim overpayment relief for any losses in the past 4 years but other than that, tough"?
Anybody have any ideas? I've only ever done let property dosclosures where there has been tax underpaid. Is it the case that it is a 'disclosure' if you owe tax, but 'overpayment relief restricted to 4 years where HMRC owe repayments'?
Thanks in advance of any help!