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UK Property Income but Resident in Spain

UK Property Income but Resident in Spain

UK citizen has a property in UK which is rented but has been living and working in Spain for 3 years with visits back to see family ocassionally. The profit on the rental is about £2000. Am I correct in thinking personal allowances are available and only the UK property income and interest on UK banks needs to be declared or does other income go on the return? ( ie spanish salary,  spanish interest). Does there need to be a separate claim to the allowance or is the submission of the return sufficient? Is there any way of not having to do a return where the income is small and clearly below personal allowances? Many thanks


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11th Jan 2013 15:22

Basic answers
Yes - as a non-resident British citizen, he is entitled to the normal personal allowance.Yes - provided he is not resident in the UK for tax purposes (he could be resident in both the UK and Spain, but it sounds that he isn't), only his UK income is disclosed on his UK tax return.No - there is no separate claim, but you need to complete the residence questionnaire as part of the tax return and claim the allowance by ticking box 16 and entering ESP in box 17No - unless you can persuade HMRC that there is no prospect of the UK income ever exceeding the personal allowance, which is unlikely given the potential for fluctuation in the letting profits.

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