Meg Saksida highlights distinctions in the tax treatment of UK and overseas rental income.
In the UK, when taxing property income, profits must be differentiated between property income generated from UK properties and property income generated from properties located outside the UK. Two distinct property businesses will therefore need to be declared for taxing. The UK business will comprise of normal letting and the letting of furnished holiday accommodation sited in the UK; likewise, the foreign letting business will include the same for those properties sited abroad.
There may also be other activity which generates income from land and other transactions that a taxpayer enters into connected with land, so the ‘rental income’ can include other income apart from rents. An example of this might be income from fishing rights in a river.
