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cyprus tax return and uk rental,

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cyprus tax return and uk rental,

Postby ladybird » 01 Mar 2013 12:56

Am still trying to get my head round declaring UK house rental on my Cyprus tax return,
plus a few other things so I will list below and maybe I can get some direct answers which would be most helpful

We are tax resident in Cyprus
We have filled out the Non resident Landlord form and also the form DT/I for the dual taxation treaty.

Now and this is what I cant get my head round.

I do a UK tax self assessment return yearly for myself and husband and always include the uk rental, with various deductions - repairs, wear and tear etc it is under the tax threshold.

I also declare our savings and pensions, so all in order there.

My question is when I do a Cyprus tax return should I include my rental income from UK on it, if I do it will bring it well over the tax threshold,


My reason for asking is this:--

This will be our fourth Cyprus tax return, the first time we went to a Tax accountant (well recommended), gave all the details about Uk rental etc and our ISA saving,

the accountant penciled through everything except the declaration of our government and private pension, the rental income was not included, neither were our savings.

the use of the official exchange rate as per Cyprus tax office was ignored and an exchange rate "made up" to keep us under the 19500 euro threshold, we were novices in those days and just accepted what we were told by the accountant, being wiser now we would like to get it right and keep it so

the same things happened the year after so since then we have done them ourselves and just declared our pensions, but having read and talked to various folks I am thinking they were done incorrectly in the first place by the accountant and we just followed on with that ourselves.

So - can someone please tell me is it necessary to declare UK rental on a Cyprus tax return, along with any uk savings we declare on the Uk tax return.
I understand the concept of the dual taxation treaty but not sure how it all fits together

Any help on this I would greatly appreciate, and sorry it is so convoluted,

Thanks

Ladybird
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Re: cyprus tax return and uk rental,

Postby charly » 04 Mar 2013 16:07

I would also like clarification on this. I have always entered our UK rent and savings interest on both UK and Cyprus tax forms but have been following another thread and I am now even more confused. We have not filled in a Defence tax form for our UK rent but it appears from comments made that I should have done this so does it go on one form or both?

Also, we have always shown the rent as a 50/50 share. Is there any ruling on this or can we change the split as this would keep us both within the no tax band? It has been shown as 50/50 on previous returns.
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Re: cyprus tax return and uk rental,

Postby O2BinTala » 05 Mar 2013 06:45

Not sure about the Cyprus return but on the UK return the split should be in the same proportion as ownership. If the property is jointly owned in equal parts then it has to be 50/50, you cannot choose.

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Re: cyprus tax return and uk rental,

Postby Bobandjulie » 26 Jun 2013 20:11

Hi Ladybird,
Did you ever find out the answer to your post? I would be interested to know as I am in a similar position.
Regards,
Julie
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Re: cyprus tax return and uk rental,

Postby ladybird » 26 Jun 2013 22:51

Bobandjulie wrote:Hi Ladybird,
Did you ever find out the answer to your post? I would be interested to know as I am in a similar position.
Regards,
Julie



Julie. Will pm you shortly

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Re: cyprus tax return and uk rental,

Postby gazzaga » 27 Jun 2013 16:25

Hi Ladybird

I would like to know what you foud out too please, could you PM me also?

Thanks
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Re: cyprus tax return and uk rental,

Postby dynamo12345 » 03 Nov 2013 10:47

My understanding with regard to rent from UK property is as follows:-

1. Property in the UK is considered immovable property and subject to tax in the UK.
2. The rental income can be offset against your UK tax allowance (around £8000 to £9000 dependant on your age). Any amount over your UK Tax allowance you pay tax to the uk.
3. As such under the double taxation agreement you do not need to declare the income here.

Bank Interest

Bank interest (in full) has to be declared in Cyprus and if from the UK has to be reclaimed from the UK Tax Office or via form R105 from your bank. If you are registered as a Cyprus tax payer with the UK Tax Authorities and for other reasons are required to fill in a Uk annual tax return (e.g. Have rental income in the UK) the interest from UK banks has to be declared but no tax is due.

Regards

Geoff
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