RE yuou article on Sunday 15th April with regard to income from holiday property abroad. My husband and I jointly own a property in the Dordogne which we offer for rental for a period of 6-8 weeks in July/August. We have declared any income from this to the French Tax Authorities. We have to top-up our French Bank Account as we do not receive enough income to cover costs etc. Do we still need to declare thisincome to the British Tax Authorities?
We are both taxpayers in this Country.

Mrs. C.M. Corps, Colchester, United Kingdom

Hello

I have an offshore US Dollar Current Account. I am confused. What will I be paying tax on? The amount in my account or the interest I receive from it? And what type of tax should I be paying? Please, any advice would be gratefully received.

Phil, London, UK

I have two questions that I would like put to Revenue & Customs as offered in you Sunday article:

A UK resident owns a share of an asset in Finland which is sold with Finnish capital income tax being paid on the capital gain involved, at the rate of 28%. Is the double tax agreement between Finland and the UK such that, once this capital gains tax has been paid in Finland, no further capital gains tax liability arises in the UK?

2. If a UK resident owning property in Finland were to gift part of that property to a UK resident member of their family and then die within one year, would the gift tax of 15% paid in Finland at the moment of gift be offset against the UK inheritance tax, or would there be a total inheritance tax aggregated between the two countries of 55%.?

David Hills, Sheffield,

The Times article appears to require a declaration of rental income arising from holiday property owned abroad.
If the property is not, and never has been, let is it necessary to declare ownership of the said property prior to any subsequent sale ie for Capital Gains purposes?

John , Harrogate, England

Oscar - You should be paying tax in South Africa on your rental income, you should be paying UK tax on your South African income as well! You may earn a discount depending on whether the UK has an agreement with South Africa for double taxation - suggest you contact an accountant/tax adviser in South Africa for a start!

Margaret - my initial thoughts are yes you should, but you might be able to offset this with your costs. I'd contact a citizens advice local to you...

Kathryn, London,

I am a UK resident with foreign domicile. I have always been told by my accountants that I do not have to declare interest on my bank account in the Republic of Ireland or the income from a property that I rent out in Spain on my UK tax return unless interest/income is remitted to the UK. Is this still the case?

Frank Murphy, London,

I have put down a deposit on a off-plan site in Morocco and in view of the recent announcement, I am wondering what my income tax and capital gains tax position will be when the property is built either for rental income or should the property be sold. The overseas solicitors have advised that non-residents are exmpt from taxes from rental income for the first three years after first occupation and that CGT is 20% for 0-5 yrs, 5-8yrs is 10% and after 8 yrs it is fully exempt. They advise there is a double taxation treaty with Morocco so that no further taxes would be payable in the UK. Could you please confirm this is correct?

Roger Flint, Altrincham, UK

My wife and I jointly own a house in Florida. The annual costs of ownership are high, e.g. Florida Property Taxes, infrastructure fees and insurances, and the house is available on the long term unfurnished rental market to help cover these costs (but not always rented out - there is a surplus of rental homes in Florida). Our US accountant prepares US Tax Returns which are submitted as those of a business run by non-US Nationals. When the allowable costs/expenses are offset against rental income the house breaks even or makes a loss for US Tax purposes. We declare all US income (rent plus small amounts of bank account interest) and all monies are retained in the USA. We have not yet benefitted financially in the UK from this ownership and as we have carefully followed USA Tax requirements we did not think we had a UK tax liability. We would much appreciate it if our situation could be clarified.

David, Cobham, Surrey

How do you "register an intention" to declare any tax owed as an individual? Following your original article of 4th Feb I wrote to the HMRC in Salford on 27th Feb (after failing to receive any information on the telephone). I have heard nothing. I have an offshore account which has attracted interest during the last four years. Although, originally British, I took a domicle of choice in 1968 when I immigrated to the USA (and became a US citizen in 1976). I returned to the UK in June 2000 due to ill-health. However, I have not worked here since then, although I own property here. I submit my US tax declaration yearly, although I have not included the interest earned in the offshore account (believing that it would only 'count' when I transferred the interest earned to either the USA or the UK). Subject to health matters, I intend tro return to the USA to work and retire.

Carolyn Harmar, London, UK

Two years ago I inherited a property in South Africa. As I do not live there, I have rented the property out.
Firstly will I be taxed in the UK on the actual value of the property in South Africa ?
I was completely unaware until I saw the article in the Sunday Times that I had to pay any tax on income from property abroad.
As far as I am aware, I do not pay tax on the rental in South Africa. What tax would I have to pay in the United Kingdom as a higher rate tax payer ?

Oscar, Sheffield, UK

My Italian husband died intestate in January 1998 at our family home near Florence, where our young daughter & I had lived with him between 1984 and 1994, when we returned to the UK. He had converted the property into 3 separate flats, in one of which he lived, another he let at a small rent leaving the third empty. It took me 3 years from his death to prove our inheritance but, as it is in a dilapidated state, we have lived there only intermittently. I pay local council tax and rates etc but have never paid UK taxes on it as I did not believe they were due but never intended deliberately evading any UK tax obligation. The tenant suddenly departed in October 2005 owing rent and rates of over £1,000 & even when she paid her small rent, I used it only to maintain her part of the property plus the general structure - roof, guttering etc. Do I owe past tax on the property, even though it is in a bad state and uninhabited for 16 months. I am 62 and living on two small pensions.

Margaret Ferrari, MIDHURST, WEST SUSSEX

We have a property and bank account in Florida. We rent our property out, however the rent does not cover all our outgoings, morgage, local tax and insurances. We have to keep our account topped up to cover this. Do we still have to inform the revenue.

J Dobrowski, Rushden, Northants

We let out our Florida property for somr of the year to offset running costs. We file USA tax returns and so far have not paid tax because our expenses have been offset against the tax liability. Will we still have to declare these activities to HMRC and will they accept a copy of USA return as proof of tax paid?

Martin Cooper, Okehampton, Devon

We own a property overseas through a Offshore Company. We do not let it out nor do we earn any interest from our overses bank account. My main concern is would we have to pay any taxes in the UK on the sale of the property. I always thought that as we were "silent" owners we would not pay any tax as in theory the UK tax dept do not know who the owners are ????

Jim Johnson, Leeds, UK

I'm a Tax advisor who is an ex HMRC Inspector. I have advised clients for 10 years on how to correct their Mistakes on Tax Returns. From what I understand the Amnesty will not provide clients immunity against prosecution-even if they come forward voluntarily! In addition HMRC may be breaking European Laws in their current approach to unpaid Taxes in a number of areas. My question is why have HMRC not discussed the terms of this amnesty with the Professions? There is an established medium through the ICAEW.

Bob Evans, Manchester, UK

We have a villa in Spain that we DO NOT let out (only used by ourselves and family) or make any profit from, and also a Spanish bank account, again that we make no money or interest from (in fact we pay for the account). Do we have to notify the taxman of our property.

P DAVEY, LONDON, UNITED KINGDOM

Yet another example of the government taking from those that work hard to make the most of what they have. The majority of hard working people will soon start to realise that in actual fact it is better to become a lay about and sponge from the state because why should they work hard and then give it away to the parasites in this country. I am aware of people who earn more from the state for doing nothing than I do as a self funded and fee paid university graduate on a moderate income who chooses to invest wisely any money I earn! Cheers Tony Blair, Gordon Brown et al. I might just have the next 30 years on your state system!!

Matt, Leeds,

What the Revenue proposes to do seems to be contrary to the European Savings Tax Directive which came into force in July 2005. This was an agreement between the 25 member states of the EU to exchange financial information about bank acounts OR to impose a retention tax on individuals who earn interest in one country but reside in another. The retention tax is being applied in increasing rates I believe on the understanding that details of customers offshore accounts will not be released to the UK Revenue until about 2011.

Jonathan Fielding, LONDON, uk

We have a holiday home in Spain. We have let very modestly in the past, but have made no profit as the costs outweighed the income - repairs, replacements, gas, electricity etc etc. As a result, we stopped doing it 2 years ago. I have kept detailed accounts. I am now led to believe that costs cannot be deducted. What are the facts?
As with earlier comments, the necessary overseas bank account to pay bills is constantly being topped up with income in the UK.
Where do we go from here?

Patricia, Oxford, UK

I am a French national. Do I have to declare interest earned in a French Bank account when returns are small and there are monthly bank charges

Jackie, Southampton, UK

I own a home in France but do not let it. The bank account makes virtually no interest as it is for paying bills and I pay a monthly fee for the account and debit card. Have I anything to declare

Philip, Southampton, UK

I bought a holiday home in my native Eire 7 years ago. I have never rented it out.
I bought some land in Eire and built a house on it 18 months ago which in total cost over three times what I paid for the first house. I now wish to sell the first house. I now want the new house to be my holiday home as I may retire to Eire.
I am resident in the UK. Will I have to pay Capital Gains tax in Eire or the UK or both?

M P Kelley, Brighton & Hove, UK

lived in Australia for 22 yrs.Started developing property in Eire 5yrs ago.Pay capital gains tax in Eire.Lived in Eire for one year,have now moved to UK.Still developing land in Ireland.All proceeds remain in Eire.Do I pay tax in UK and from when.If I sell a property in Australia which I have owned for years,do I owe UK tax,haing resided here for 6 months,and have no intention of repatriating money.

Bob Reynolds, Worthing, West Sussex

I lived in Spain for twenty years of my life because my parents moved to Spain, I still own a property in Spain but do not rent it out. Do I still have to declare this in the UK. I still pay all local taxes over there and have a Spanish Tax reference number

Heather Heber Percy, London, United Kingdom

Question for the Taxman:
Suppose you have been non-resident for over 5 years and then return to the UK leaving your assets offshore. On a subsequent sale are you liable to CGT
(a) at all?
(b) on the gain since you returned to UK ? or
(c) the gain since you originally purchased the overseas asset?

John Pollard, perth,