HMRC Tax Return - Foreign Income

pennypincher3562

I am currently doing my online tax return, and noted the 'do you have any foreign income' question. I did receive some money from overseas sources amounting to less than £1000.

Do I have to declare the above income in the 'foreign income' section, or can I just lump it in with my UK based income?

Thanks.

On-the-coast

From memory... i think you can “lump it in” if it’s <£300 otherwise you have to do the foreign income section. Read the online guide notes for each section and it makes it reasonably clear... although it can get fiendishly complex (imho) when you’re trying to account for withholding tax between different jurisdictions.

londoninvestor

On-the-coast wrote: »

From memory... i think you can “lump it in” if it’s <£300 otherwise you have to do the foreign income section. Read the online guide notes for each section and it makes it reasonably clear... although it can get fiendishly complex (imho) when you’re trying to account for withholding tax between different jurisdictions.

It depends on the type of income: here's the chapter and verse - link

(this is what you see if you click the ? next to the "Do you need to complete the foreign section" question in the online Self Assessment)

Quick summary:

• Up to £2000 of interest can be included with the UK sections of your form
• Ditto for up to £300 of foreign dividends
• If your total property income is under £1000, no need to complete a section for the foreign property unless you want to claim loss relief for your expenses

However, even if you're under these limits, and you want to claim Foreign Tax Credit Relief because there's double taxation, you need to fill in a "foreign" section in order to then claim the FTCR later in your return.