Letter from HMRC on Overseas assets, income or gains

MigsyBigsy

Hello all,

apologies in advance. I posted this on the wrong thread

I am slightly concerned that my mum (a UK resident pensioner) has today received a letter from HMRC regarding overseas income. She is a Spanish national and has a property in Spain which is being let. She is however currently paying tax on that property in Spain.

The letter states she has 4 options to tick:

1. worldwide disclosure facility
2. declared all overseas income in the tax return
3. not declared as they are covered by personal allowances or reliefs; and
4. not liable to UK tax

She has not declared the income here in the UK as it was declared in Spain. 

thank you in advance.
M

[Deleted User]

MigsyBigsy said:

Hello all,

apologies in advance. I posted this on the wrong thread

I am slightly concerned that my mum (a UK resident pensioner) has today received a letter from HMRC regarding overseas income. She is a Spanish national and has a property in Spain which is being let. She is however currently paying tax on that property in Spain.

The letter states she has 4 options to tick:

1. worldwide disclosure facility
2. declared all overseas income in the tax return
3. not declared as they are covered by personal allowances or reliefs; and
4. not liable to UK tax

She has not declared the income here in the UK as it was declared in Spain. 

thank you in advance.
M

A few misunderstandings here! 

You say that she is a UK resident. She MUST therefore complete a tax return declaring all of her income including the income from Spain. Her resultant U.K. tax liability (if any) can be reduced by relief for the tax paid in Spain but, even if it transpires that no further tax is due, there is still the obligation to declare. 

It is possible that No. 3 applies but that is to be determined.