Use these notes to help you fill in the Foreign pages of your tax return - GOV.UK
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Foreign notes
Tax year 6 April 2019 to 5 April 2020 (2019–20)
Use these notes to help you fill in the
Foreign pages of your tax return
These notes are for common types of foreign Check if you still need to fill in a tax return
income including: If you do not think you need to fill in a tax return
• interest from overseas savings (page FN 6) for this year, go to
• dividends from foreign companies (page FN 6) www.gov.uk/check-if-you-need-a-tax-return
• income from overseas pensions (page FN 7)
If you do not need to fill in a return, you must tell
• income from land and property abroad
us by 31 January 2021 to avoid paying penalties.
(page FN 10)
• foreign tax paid on employment, Use the ‘Foreign’ pages if you want to claim
self-employment and other income (page FN 14) Foreign Tax Credit Relief or Special Withholding
If you’re not sure about how to declare foreign Tax if you’re claiming the remittance basis.
income, tax and foreign tax credit relief, ask your Do not use the ‘Foreign’ pages for:
tax advisor. • foreign income earned by your business or
partnership – use the ‘Self-employment’ or
Property income allowance
‘Partnership’ pages instead
Income from overseas property, including UK • capital gains from the disposal of overseas assets
property, up to £1,000 is exempt from tax and – use the ‘Capital gains summary’ pages
does not need to be reported on a tax return. • foreign employment income – use the
This exemption applies even if your share of this ‘Employment’ pages to report this income and
income is from property you own or let jointly. only use the ‘Foreign’ pages to claim the foreign
If your total income from your overseas property, tax paid on this income
including UK property or furnished holiday letting • income from furnished holiday lettings in
(FHL) income reported on the ‘UK property’ page, the European Economic Area – use the ‘UK
is £1,000 or less, do not complete the ‘Foreign’ property’ pages unless you’re taxable on the
pages unless your allowable expenses are higher remittance basis
than your turnover and you want to be able to When making a declaration of foreign income,
claim relief for the loss against future property please make sure that the figure of ‘double taxed
income. If you do this do not complete the income’ is shown – the figure that was actually
property income allowance box (box 14.1). taxable in the foreign country.
If your total income from your overseas property, If you use this form to claim relief for foreign tax
including UK property or furnished holiday letting paid on capital gains (boxes 33 and 37 to 40); the
(FHL) income reported on the ‘UK property’ page, gains must also be included in the ‘Capital Gains
is over £1,000, complete the ‘Foreign’ pages Tax Summary’ pages.
by either:
• claiming the new allowance in box 14.1 – if
you claim the property income allowance, you A For more information on furnished holiday lettings,
go to www.gov.uk and search for ‘HS253’ and for
cannot deduct any allowable expenses or claim the remittance basis, go to www.gov.uk and search
any other allowances for ‘HS264’.
• calculating your property profits by deducting
allowable expenses and allowances – if you Your name and Unique Taxpayer Reference
do this, you cannot claim the property income If you printed the ‘Foreign’ pages from our website,
allowance fill in your name and Unique Taxpayer Reference
If you have more than one property business, (UTR) in the boxes at the top of the form.
the total amount of property income allowance
claimed cannot exceed £1,000.
A For more information on the property income Example of completed name and UTR boxes
allowance, go to www.gov.uk/guidance/tax-free-
allowances-on-property-and-trading-income
SA106 Notes 2019–20 Page FN 1 HMRC 12/19Unremittable income If no DTA exists, or the agreement does not cover
If you claimed any income as unremittable in an that particular foreign tax, relief is only available if
earlier tax year and the restrictions preventing the tax matches UK Income Tax or Capital
you from bringing that income to the UK Gains Tax.
stopped during the 2019 to 2020 tax year, you For more information, go to
must convert that foreign income and tax into www.gov.uk/government/publications/double-
UK pounds using the exchange rate when the taxation-treaties-territory-residents-with-uk-
restriction ended. income
This is foreign income that you could not bring to
Box 2 If you’re calculating your tax, enter the
the UK because of exchange controls or a shortage
total Foreign Tax Credit Relief on your income
of foreign currency in the overseas country. If you
later bring this income into the UK, convert the You do not have to work out the FTCR yourself.
income and foreign tax into UK pounds, using the We’ll do this for you if you complete other
exchange rate at the time of the remittance. relevant boxes and send your tax return by the
filing date. Only fill in box 2 if you want to
Box 1 If you were unable to transfer any of your calculate the FTCR yourself.
overseas income to the UK, put ‘X’ in the box If you want to calculate FTCR, use
If you put an ‘X’ in box 1, you must give details of Helpsheet 263, ‘Relief for foreign tax paid’ first.
the country where the income arose, the amount Put the total amount of relief in box 2.
in foreign currency and any foreign tax you’ve
paid in ‘Any other information’ on page TR 7 of A For more information, go to www.gov.uk and search
your tax return. for ‘HS263’.
Foreign Tax Credit Relief Income from overseas sources
If you’ve paid tax in another country on your If you put any amounts on page F 2 and
overseas income you can claim Foreign Tax Credit page F 3, convert the income into UK pounds
Relief (FTCR) if: using the exchange rate at the time the income
• you’re a UK resident arose. If you’re not sure, ask your tax adviser
• the foreign income was properly charged under or go to www.gov.uk/government/publications/
that country’s law, this means that you should exchange-rates-for-customs-and-vat-yearly
have taken reasonable steps, (for example, Put the full amount in the relevant boxes (even if
filing an overseas tax return), to claim all you did not bring the income into the UK) and fill
available allowances, relief and exemptions in in the ‘Total’ boxes on page F 3.
that country
Check the relevant double taxation treaty for any
• the amount of FTCR does not exceed UK tax
limits to the reliefs you can claim.
on the same item of income or gains
• there’s a double taxation agreement (DTA) If you do not have room for all your entries,
and foreign tax relief is restricted to the attach a separate sheet for each type of income.
minimum foreign tax payable in the agreement
Column A
A DTA is an arrangement to avoid taxing the
same item twice. If a DTA is in place, you should Use the list on pages FN 3 to FN 5 to find the
check how its terms apply to you prior to making 3-letter code for the country where your income
a claim for FTCR. Only admissible deductions arose. Put that code in column A. Use a separate
should be included as part of a claim to FTCR row for each country.
– the Double Taxation Manual provides more
information on which deductions are admissible.
If a DTA does not give the other country the right
to tax the income, you cannot claim FTCR and
Example of the country code for Jersey, column A
must claim relief in the other country. If a DTA
states the other country can only tax the income at
a particular rate, and you’ve paid tax to the other Country or territory list
country at a higher rate, you must restrict your A ‘•’ in the second column of the list shows that
claim to FTCR to the rate specified in the DTA. the UK has a DTA with that country or territory.
Page FN 23-letter
3-letter
Country or territory DTA code
Country or territory DTA code
Colombia COL
Afghanistan AFG
Comoros COM
Albania • ALB
Congo COG
Algeria • DZA
Cook Islands COK
American Samoa ASM
Costa Rica CRI
Andorra AND
Côte d’Ivoire • CIV
Angola AGO
Croatia • HRV
Anguilla AIA
Cuba CUB
Antigua and Barbuda • ATG
Curaçao CUW
Argentina • ARG
Cyprus • CYP
Armenia • ARM
Czech Republic • CZE
Aruba ABW
Democratic Republic of the Congo
Australia • AUS
(formerly Zaire) COD
Austria • AUT
Denmark • DNK
Azerbaijan • AZE
Djibouti DJI
Bahamas BHS
Dominica DMA
Bahrain • BHR
Dominican Republic DOM
Bangladesh • BGD
Ecuador ECU
Barbados • BRB
Egypt • EGY
Belarus • BLR
El Salvador SLV
Belgium • BEL
Equatorial Guinea GNQ
Belize • BLZ
Eritrea ERI
Benin BEN
Estonia • EST
Bermuda BMU
Ethiopia • ETH
Bhutan BTN
Falkland Islands • FLK
Bolivia • BOL
Faroe Islands • FRO
Bonaire BES
Fiji • FJI
Bosnia and Herzegovina • BIH
Finland • FIN
Botswana • BWA
France • FRA
Brazil BRA
French Guiana • GUF
British Virgin Islands • VGB
French Polynesia PYF
Brunei Darussalam • BRN
Gabon GAB
Bulgaria • BGR
Gambia • GMB
Burkino Faso BFA
Georgia • GEO
Burma (also known as Myanmar) • MMR
Germany • DEU
Burundi BDI
Ghana • GHA
Cambodia KHM
Gibraltar GIB
Cameroon CMR
Greece • GRC
Canada • CAN
Greenland GRL
Cape Verde CPV
Grenada • GRD
Cayman Islands • CYM
Guadeloupe • GLP
Central African Republic CAF
Guam GUM
Chad TCD
Guatemala GTM
Chile • CHL
Guernsey • GGY
China • CHN
Guinea GIN
Christmas Island • CXR
Guinea-Bissau GNB
Cocos (Keeling) Islands • CCK
Page FN 33-letter 3-letter
Country or territory DTA code Country or territory DTA code
Guyana • GUY Mexico • MEX
Haiti HTI Micronesia FSM
Honduras HND Moldova • MDA
Hong Kong (SAR) • HKG Monaco MCO
Hungary • HUN Mongolia • MNG
Iceland • ISL Montenegro • MNE
India • IND Montserrat • MSR
Indonesia • IDN Morocco • MAR
Iran IRN Mozambique MOZ
Iraq IRQ Namibia • NAM
Ireland (Republic of) • IRL Nauru NRU
Isle of Man • IMN Nepal NPL
Israel • ISR Netherlands • NLD
Italy • ITA New Caledonia NCL
Jamaica • JAM New Zealand • NZL
Japan • JPN Nicaragua NIC
Jersey • JEY Niger NER
Jordan • JOR Nigeria • NGA
Kazakhstan • KAZ Niue NIU
Kenya • KEN Norfolk Island • NFK
Kiribati • KIR North Korea PRK
Kosovo • XKX Northern Mariana Islands MNP
Kuwait • KWT Norway • NOR
Kyrgyzstan KGZ Oman • OMN
Laos LAO Pakistan • PAK
Latvia • LVA Palau PLW
Lebanon LBN Panama • PAN
Lesotho • LSO Papua New Guinea • PNG
Liberia LBR Paraguay PRY
Libya • LBY Peru PER
Liechtenstein • LIE Philippines • PHL
Lithuania • LTU Pitcairn Island PCN
Luxembourg • LUX Poland • POL
Macao (SAR) MAC Portugal • PRT
Macedonia (FYR) • MKD Puerto Rico PRI
Madagascar MDG Qatar • QAT
Malawi • MWI Reunion • REU
Malaysia • MYS Romania • ROU
Maldives MDV Russian Federation • RUS
Mali MLI Rwanda RWA
Malta • MLT St Helena and Dependencies SHN
Marshall Islands MHL St Kitts and Nevis • KNA
Martinique • MTQ St Lucia LCA
Mauritania MRT St Pierre and Miquelon SPM
Mauritius • MUS St Vincent and the Grenadines VCT
Mayotte MYT Saba BES
Page FN 43-letter 3-letter
Country or territory DTA code Country or territory DTA code
Samoa WSM United States Virgin Islands VIR
San Marino SMR Uruguay • URY
Sao Tome and Principe STP Uzbekistan • UZB
Saudi Arabia • SAU Vanuatu VUT
Senegal • SEN Vatican VAT
Serbia and Montenegro • SRB Venezuela • VEN
Seychelles SYC Vietnam • VNM
Sierra Leone • SLE Wallis and Futuna Islands WLF
Singapore • SGP Yemen YEM
Sint Eustatius BES Zambia • ZMB
Sint Maarten (Dutch part) SXM Zimbabwe • ZWE
Slovak Republic • SVK None of the above ZZZ
Slovenia • SVN (Give details in ‘Any other information’
on page TR 7 of your tax return.)
Solomon Islands • SLB
Somalia SOM
South Africa • ZAF
South Korea • KOR
South Sudan SSD
Spain • ESP
Sri Lanka • LKA
Sudan • SDN
Suriname SUR
Svalbard and Jan Mayen Islands SJM
Swaziland • SWZ
Sweden • SWE
Switzerland • CHE
Syria SYR
Taiwan • TWN
Tajikistan • TJK
Tanzania TZA
Thailand • THA
Timor-Leste TLS
Togo TGO
Tokelau TKL
Tonga TON
Trinidad and Tobago • TTO
Tunisia • TUN
Turkey • TUR
Turkmenistan • TKM
Turks and Caicos Islands TCA
Tuvalu • TUV
Uganda • UGA
Ukraine • UKR
United Arab Emirates • ARE
United Kingdom GBR
United States of America • USA
Page FN 5Column B If you’ve had any UK Income Tax taken off this
In column B, put the total amount of income (in UK income, include it here and give more details in
pounds) before taking off any foreign tax or Special ‘Any other information’ on page TR 7 of your
Withholding Tax (SWT). tax return.
SWT was an amount of tax taken off certain
Column E
payments to UK residents (in addition to foreign
If you’re claiming FTCR, put ‘X’ in this box.
tax). It can be set against your UK tax liability or
repaid to you if the amount exceeds your liability Column F
for that year. This will only now be relevant if
If you’re claiming FTCR, put the same amount
you’re taxable on the remittance basis and are
as the figure in column B. If you’re not claiming
remitting income relating to earlier years where
FTCR, the figure will be the amount in column B,
SWT was withheld.
minus any amount in column C.
You need to add the tax taken off to the amount From 6 April 2016, if you’ve not paid tax because
received after deduction and put the total in you’re within the Dividend Allowance then you
column B (make sure that you put the SWT in cannot claim FTCR on that income.
column D).
If you have more than one source of the same Interest and other income from
income from a country, add the amounts together overseas savings
(unless taxed differently). For example, if you In columns A to F include any:
have 2 savings accounts in Monaco, add the • interest from foreign bank accounts, foreign
amounts before putting the total in column B. company loan stocks or from loans to
individuals or organisations outside the UK
• interest from overseas unit trusts and other
investment funds (use the details on your
unit trust or fund voucher)
• income from a purchased life annuity
• excess ‘reported income’ from reporting
offshore funds – this is income accumulating
Example of income arising or received, column B in offshore funds that you’ve not yet received
• other overseas savings and accrued income
The following countries may have taken SWT:
securities
Andorra, Austria, Curaçao, Gibraltar, Jersey,
Liechtenstein, Luxembourg, Monaco, San Marino,
Sint Maarten and Switzerland. A For information on the Accrued Income Scheme,
go to www.gov.uk and search for ‘HS343’.
In the ‘Additional information’ box, box 19 on
page TR 7 of your tax return, put:
Check the Interest Article of the relevant DTA
• the name of foreign tax which was deducted
before completing this section to make sure you’re
or the name of the agreement under which the
able to claim FTCR as certain types of income are
foreign tax was deducted
only taxable in the UK.
• the years when the foreign tax was deducted to
which this claim for SWT relates Box 3
Fill in columns A to F, add up the figures in
Column C column D and put the total in box 3. Include any
If you had any foreign tax taken off your amounts shown on separate sheets that you attach
income in column B, put the amount of tax to the ‘Foreign’ pages.
(in UK pounds) in column C. Foreign tax is the
lower of the foreign tax actually withheld and the Box 4
amount of tax credit allowed under the terms of Fill in columns A to F, add up the figures in
a DTA. column F and put the total in box 4. Include any
amounts shown on separate sheets that you attach
Column D to the ‘Foreign’ pages.
If you’re taxable on the remittance basis, put any
SWT taken off your foreign income in column D.
You must show your amount in UK pounds.
Page FN 6Dividends from foreign companies foreign dividend that was paid to you after
Check the Dividend Article of the relevant DTA 5 April 2008, you should use the working sheet on
before completing this section, as there may be a this page to work out the amounts to enter in
restriction to the amount of foreign tax credit you column B on page F 2.
can claim. To claim the tax credit, you’ll need to make
You cannot claim FTCR for taxed dividends an adjustment to box 2 on page F 1. Fill in
from Antigua, Australia (franked dividends the working sheet on this page to calculate the
only), Belize, Cayman Islands, Cyprus, Gambia, adjustment. Add this into box 2. Tell us in the
Guernsey, Isle of Man, Jersey, Kiribati, Malaysia, ‘Any other information’ box (on page TR 7 of
Malta, Monserrat and Singapore. your tax return) the total amount of dividends
In columns A to F put details of any: included in box 4 and the amount that does not
• dividends from foreign companies (use the details qualify for UK tax credit.
on your dividend voucher)
• distributions (use their value at the date of Working sheet for non-UK dividends
distribution) from overseas sources, such as, qualifying for tax credit
company assets released to shareholders A £
Amount actually received
Do not include:
• distributions from the liquidation of Foreign tax taken off before receipt
B £
a foreign company
• distributions from a foreign company that return Total box A + box B
C £
your capital interest or are in the form of its
Box C x 100/90
own stocks and shares D £
Copy to column B on page F 2
• stock dividends or bonus shares from a stock
dividend issue made by a foreign company Box D x 10%
Add to amount in box 2
E £
There are specific rules about dividends from
offshore funds. If the fund has more than 60%
invested in interest bearing assets, any distribution Dividends received on or after 6 April 2016
that you receive, or that are reported to you, Dividends received on or after 6 April 2016 no
are treated as interest received. You need to longer qualify for a dividend tax credit. From
put this under ‘Interest and other income from 6 April 2016, you will not pay tax on dividend
overseas savings’. income up to the amount of the dividend
allowance. For 2019 to 2020, the dividend
If you’re not sure whether your shares are
allowance is £2,000. You’ll pay tax
in an offshore fund, ask your tax adviser.
on dividends above the dividend allowance
Box 5 at the following rates:
Fill in columns A to F, add up the figures in • 7.5% on dividend income within the basic
column D and put the total in box 5. Include any rate band
amounts shown on separate sheets that you attach • 32.5% on dividend income within the higher
to the ‘Foreign’ pages. rate band
• 38.1% on dividend income within the additional
Box 6 rate band
Fill in columns A to F, add up the figures Include all dividend income, even if it’s less than
in column F and put the total in box 6. £2,000, as it may affect the rate of tax that you
Include any amounts shown on separate sheets pay on dividends you receive in excess of the
that you attach to the ‘Foreign’ pages. £2,000 allowance.
Remittance basis applied for earlier years
If, in the 2019 to 2020 tax year, you remitted
A For more information, go to
www.gov.uk/tax-on-dividends
to the UK foreign dividends taxed using the
remittance basis in an earlier year, include this
amount in box 4. Overseas pensions, social security benefits
and royalties
Dividends of earlier tax years are not shown on
the section of your tax return dealing with foreign Fill in columns A to F if you received a pension
dividends. If you’re claiming a tax credit on a or social security benefits from overseas during
Page FN 7the 2019 to 2020 tax year. You must also include • pensions and annuities payable under
any pensions or annuities (not purchased life the Netherlands’ Wet uitkeringen
annuities) paid in the UK for an overseas vervolgingsslachtoffers 1940 to 1945 scheme
pension provider. Also include lump sum • certain beneficiaries’ income withdrawal or
payments from overseas schemes that are taxable annuities purchased from unused pension
as pension income. drawdown or flexi-access drawdown funds
Under the majority of DTAs, a pension paid in
consideration of a past employment will only be A For more information on inheriting a pension, go to
www.gov.uk/tax-on-pension-death-benefits
taxable in the country of residence. However,
some DTAs provide that pensions may be taxed
in the country where the pension arises and it’s If you’re not sure whether your pension is exempt
important to check the relevant DTA prior to from UK tax, ask us or your tax adviser.
making a claim for FTCR.
If you have a pension that’s not taxable in the UK
A For more information about pensions for
war widows and dependants, go to
because of a DTA, give full details of the pension’s www.gov.uk/war-widow-pension
payer, pension and relevant DTA in the ‘Any
other information’ box on your tax return.
Claiming an exemption
Do not include pensions or lump sums from
If you’re claiming FTCR – put in column F, the
overseas pension schemes registered in the UK on
amount in column B, minus the exemption –
this page. These go in the ‘UK pensions, annuities
remember to put an ‘X’ in column E.
and other state benefits received’ section on page
TR 3 of your tax return. If you’re not claiming FTCR – put in column F,
the amount in column B, minus the exemption
If your foreign pension included payments from an
and less any amount in column C.
earlier tax year, you can set those payments against
the year that they belong to if the pension is taxed Social security benefits - received from
on the arising basis. If you’re not sure if this is to another country
your advantage, ask us or your tax adviser.
Do not include foreign benefits that match the
10% deduction following UK benefits:
• Incapacity Benefit paid in the first 28 weeks
From 6 April 2017 you’ll pay tax on 100% rather
of your incapacity or if you’ve been getting it
than 90% of your foreign pension, annuity or
for the same illness since before 13 April 1995
social security benefits regardless of when you
• Attendance Allowance
started to take it. The 10% deduction has been
• Disability Living Allowance or Severe
abolished. You must tell us the total overseas
Disablement Allowance
pension, annuity or social security benefit
• Maternity Allowance
payments you received.
• Guardian’s Allowance
Exemption • Child Benefit
Some foreign pensions are wholly or partly • Universal Credit
exempt from UK tax. Include all other foreign benefits. If you’re not
These include: sure what to include, ask us or your tax adviser.
• war widow’s pensions, if the death in service
Box 8
was before 6 April 2005, and some pensions
Fill in columns A to F, add up the figures in
paid to other dependants of deceased forces
column D and put the total in box 8. Include any
and Merchant Navy personnel
amounts shown on separate sheets that you attach
• foreign pensions with an award for a work-related
to the ‘Foreign’ pages.
illness or injury at work – the award amount
is not taxable Box 9
• certain pensions and annuities payable under
Fill in columns A to F, add up the figures in
German or Austrian laws – if you started to
column F and put the total in box 9. Include any
receive this in the 2019 to 2020 tax year, attach
amounts shown on separate sheets that you attach
a copy of the pension award (‘Bescheid’) to your
to the ‘Foreign’ pages.
tax return
Page FN 8Dividends and all other income received Any amounts of residential property income
by a person abroad from persons abroad included in box 13 must be
calculated using only 25% of those finance costs.
Boxes 10 to 13
You may need to fill in boxes 10 to 13 if you
transferred or have taken part in the transfer of A For more information on the residential property
finance costs restriction, go to www.gov.uk/guidance/
assets so that a person abroad received income. changes-to-tax-relief-for-residential-landlords-how-its-
Put all items chargeable as income under the worked-out-including-case-studies
transfer of assets provisions in this section.
If the income received by the person abroad is Box 13.1 Amount of residential property
‘protected foreign income’, do not enter details of income or restricted finance costs associated
protected foreign income in boxes 10 to 13.1. with income in box 13 for calculating relief for
For more information read the ‘Trust protections residential finance costs
and protected foreign income’ section of The remaining 75% of the finance costs (the
Helpsheet 262, ‘Income and benefits from ‘restricted finance costs’) from each residential
transfers of assets abroad and income from property business operated by persons abroad is
non-resident trusts’. used as a basis for calculating a reduction to your
Income Tax. Use the working sheet on this page to
A Go to www.gov.uk and search for ‘HS262’. calculate your tax reduction. Each person must be
considered separately and each property business
they carry on (for example UK property and
Relief for residential finance costs foreign property) must be considered separately.
For the tax year 6 April 2019 to 5 April 2020, If a property business made no profit, or made a
the allowable cost of getting a loan or alternative loss, put zero in column A. If it had no residential
finance to buy a residential property that’s let, finance costs, put zero in column B.
and any interest on those loans and alternative Any unused finance costs can be carried forward
finance, is restricted to 25% of these costs for to following years.
each property business.
Use the working sheet below to calculate your tax reduction.
Column A Column B Column C Unused finance
Working sheet Property business Restricted Lower of column costs to be carried
profits finance costs A and column B forward
for box 13.1
£ £ £ £
Example 1: Person A’s
15,000 2,000 2,000 0
foreign property business
Example 2: Person A’s
3,000 4,000 3,000 1,000
UK property business
Property business 1
Property business 2
Property business 3
Property business 4
Property business 5
Total of column C – copy to box 13.1
Page FN 9Box 13.2 Unused residential finance costs Read ‘Property income allowance’ on page FN 1.
brought forward If you want to claim FTCR, fill in the ‘Foreign
The amount of unused residential property finance tax paid on employment, self-employment and
costs brought forward from earlier years is subject other income’ section on page F 6. Make sure that
to limits. the foreign tax being claimed is the ‘minimum’
due under the law of the foreign country after all
For each property business:
deductions, exemptions, reliefs and allowances
• if the total of unused residential finance costs
have been claimed.
brought forward plus residential finance costs
(incurred in year) does not exceed the amount of Do not include income from the commercial
the property profits, include the full amount of letting of furnished holiday lettings (FHL) in the
unused residential finance costs brought forward EEA calculated on the arising basis. This goes in
in box 13.2 the ‘UK property’ pages.
• if the total of unused residential finance costs
brought forward plus residential finance A For more information about furnished holiday
lettings, go to www.gov.uk and search for ‘HS253’.
costs (incurred in year) exceeds the amount For more information about the remittance basis,
of the property profits, you can only include go to www.gov.uk and search for ‘HS264’.
in box 13.2 the amount of unused residential
finance costs which, when added together with
Income and expenses
residential finance costs incurred in year, is
equal to the amount of property profits Box 14 Total rents and other receipts
(excluding taxable premiums for the grant
Any balance of the residential finance costs which
of a lease)
is still unrelieved, may be carried forward to
future years of the same property business. Put the total amount of any rents, or other
receipts, you receive from any rights or interests
Income from land and property abroad held in land or property abroad, in box 14.
You’re taxable on the amount of your overseas Do not include any chargeable premiums here.
rental income over £1,000, even if you do not These go in box 16. Before completing this
bring that income to the UK, unless you claim the box, read ‘Property income allowance’
remittance basis of taxation. on page FN 1. If you use cash basis, your income
is the total amounts you received during the year
If your overseas rental income was up to £1,000,
(see box 14.2).
read ‘Property income allowance’ on page FN 1.
Fill in boxes 14 to 24.2, columns A to F, and Box 14.1 Property income allowance
boxes 25 to 32, if you have any of the following: Before completing this box, read ‘Property income
• only one overseas let property allowance’ on page FN 1.
• more than one property but they’re in the same If your property income is over £1,000 and
country, and all the income is remittable you’re claiming property income allowance, the
• more than one property and no foreign tax is total amount of the allowance claimed from all
taken off any of the income and all the income property businesses (this includes UK or EEA FHL
is remittable or UK property business) cannot exceed £1,000.
If you’ve more than one overseas let property If you claim the property income allowance, you
and your properties are in different countries and cannot claim any other expenses or allowances.
you’ve paid foreign tax on that rental income,
photocopy pages F 4 and F 5 and fill in the boxes Box 14.2 Traditional accounting or cash basis
for each property. Only put ‘X’ in box 14.2 if you used traditional
accounting instead of cash basis to calculate your
Furnished holiday lettings in the income and expenses.
European Economic Area (EEA) Cash basis is a simpler way of working out your
Only fill in page F 4 and page F 5 if you pay tax property business profits or losses. You add up
on the remittance basis. You need to show all all your property income received (your turnover)
amounts of income from land and property and take off any allowance expenses paid in the
abroad remitted to the UK, unless your total year. If you use cash basis, you cannot claim
property income was up to £1,000 and you’re capital allowances. Do not include money you
claiming the property income allowance. owe or owed to you after 5 April 2020.
Page FN 10You can only use cash basis if your total income use box 23 for the cost of replacing domestic
from foreign property (including FHLs in the items such as furniture, furnishings, appliances
EEA) is up to £150,000. and kitchenware
If you have income from a foreign property • if you’ve claimed the trading income allowance
and an FHL in the EEA, you must use the same in box 14.1 (do not fill in box 17) – if you
accounting practice for both incomes. Box 14.2 claimed capital allowances in previous years on
and box 5.2 on the ‘UK property’ page must both an asset that you’ve disposed of this year then go
be either present or absent. to box 20, otherwise go to box 24
Do not include the cost of buying or selling,
A For more information about cash basis, go to improving or altering, land or property,
www.gov.uk/guidance/income-tax-when-you-rent-out- equipment, furnishings or furniture. These are
a-property-working-out-your-rental-income capital allowances and go in box 21.
Non-residential property
Transitional adjustments
You can claim the costs of getting a loan or
If you change accounting practices for the alternative finance to buy a non-residential
2019 to 2020 tax year, you may need to make a property that you let, and the full amount of
transitional adjustment. any interest on such a loan or alternative finance
All transitional receipts must be included in payments.
box 14 and all transitional expenses must be Residential property
included in box 17.
For the 2019 to 2020 tax year, you can only claim
Box 16 Premiums paid for the grant of a lease 25% of the cost of getting a loan, or alternative
If you’ve been paid premiums for the grant of finance to buy a residential property that you
a lease for possession of a property, put the let, and 25% of any interest on such a loan or
amount received in box 16. Before you fill in this alternative finance payments.
box, you may need to fill in the working sheet For example, if you incurred £4,000 in interest on
for premiums for the grant of a lease, in the such a loan:
‘UK property’ notes. • include £1,000 (25% of £4,000) in box 17
• put £3,000 (75% of £4,000) in box 24.1 – this
A For more information, go to www.gov.uk will be used to calculate a reduction in your
and search for ‘SA105’.
Income Tax
Box 17 Allowable property expenses (rent,
repairs, legal fees, cost of services provided) A For more information on the residential property
finance costs restriction, go to www.gov.uk/guidance/
You can claim expenses such as: changes-to-tax-relief-for-residential-landlords-how-its-
• rents, rates, insurance and ground rents worked-out-including-case-studies
• property repairs and maintenance
• legal, management, professional fees Use the working sheet below to work out the
• interest and other finance charges (restricted for amount to include in box 17 and box 24.1.
residential property from 6 April 2017)
• costs of services provided, including wages Working sheet for box 17 and box 24.1
• other property expenses
Non-residential property finance
You cannot deduct expenses: charges and loan interest
A £
• incurred in connection with the first letting or
subletting of a property, such as the cost of Residential property finance charges
drawing up a lease, agents’ and surveyors’ fees and loan interest
B £
and commission
• for costs of agreeing and paying a premium on Box B x 25%
C £
renewal of a lease Box B minus box C
• for fees for planning permission or registration (copy this to box 24.1)
D £
of title on a property purchase
Box A + box C
• for renewals – the renewals allowance for the E £
(include this amount in box 17)
cost of replacing items is no longer available –
Page FN 11Calculating profits and losses for Box 22 Zero-emission goods vehicle allowance
tax purposes Claim the full cost of a new, but not second hand,
Box 19 Private use adjustment zero-emission goods vehicle in this box.
If you put any amounts in box 17 that were not If you use a vehicle outside of your business, for
solely for the property business, put the private 50% of the time for example, you must reduce the
(non-business) proportion in box 19. For example, amount of the allowance you claim by 50%.
if you include the cost of insuring the property
for a year in box 17, and you only let it for Box 22.1 The Structures and Buildings
8 months, put the 4 months non-business cost in Allowance
box 19. If you’re eligible to claim the new Structures and
Buildings Allowance (SBA), put the amount of the
Box 20 Balancing charges claim in box 22.1. If you’re claiming for the first
You may need to make an adjustment, called a time for a particular structure or building, use the
balancing charge, if you sell, give away or stop ‘Any other information’ box, box 19 on page 7
using an item in your business that you claimed a of your tax return, to record the:
capital allowance on. Put this amount in box 20. • date the building first came into qualifying use
or if later, the date the qualifying expenditure
Box 21 Capital allowances for equipment was incurred
and vehicles
• total amount of qualifying expenditure incurred
You cannot deduct the cost of buying, altering, To check if and how much you can claim,
building, installing or improving ‘fixed’ assets go to www.gov.uk/guidance/claiming-capital-
such as property, equipment or machinery. allowances-for-structures-and-buildings
You cannot claim depreciation or losses when
such assets are disposed of. Instead, you can claim Box 22.2 Electric charge-point allowance
capital allowances, which reduce your profits You can claim 100% first year capital allowances
(or increase a loss). for expenditure invested in the acquisition and
Expenditure incurred on the provision of, or the installation of new and unused electric
special leasing of, plant or machinery for use in charge-points for electric vehicles. Put the amount
a dwelling house is not qualifying expenditure of expenditure incurred in box 22.2.
for capital allowances for an ordinary property
business or an overseas property business. Box 23 Costs of replacing domestic items
(for residential lettings only)
There are rules for claiming capital allowances on
fixtures in a property that you buy, sell or lease. You can claim the cost of replacing domestic items
in the residential accommodation where:
From April 2012, if you buy or sell a property that • the cost is incurred on purchasing a replacement
has fixtures, you must agree the part of the purchase domestic item – you cannot claim the initial
price to be attributed to those fixtures with the cost for an item provided for use in the
other party to the sale. You should have a mutual accommodation for the first time
agreement which is usually made by means of a • the new item is provided solely for the use of the
joint election (called a ‘section 198’ election) which tenants in the accommodation and the old item
you must tell HM Revenue and Customs about is no longer available for use
within 2 years of the date of transfer.
If the new item is an improvement on the old item,
From April 2014, if you buy or sell a property the you can only claim up to the amount needed to
new owner will not be able to claim allowances for replace the original item.
fixtures, if the previous owner did not pool their
qualifying expenditure on the fixtures. Include items such as:
• moveable furniture, for example, beds,
You cannot claim capital allowances if you’re free-standing wardrobes
claiming the property income allowance (in • furnishings, for example, curtains, linens,
box 14.1), or using cash basis. The only exception carpets, floor coverings
for those using cash basis (and not claiming the • household appliances, for example, televisions,
property income allowance) is cars. fridges, freezers
• kitchenware, for example, crockery, cutlery
A For more information on capital allowances, go to
www.gov.uk/capital-allowances
Page FN 12ofits and losses for tax purposes’ section for each let property.
x purposes
22 Zero-emission goods vehicle allowance
You cannot claim capital allowances if you’re If you’ve only filled in one set of boxes 14 to 24.2,
£ the property income allowance
claiming copy the figure from box 24 to box 25 and fill in
(in box 14.1). columns A to F.
23 Costs of replacing domestic items (for residential If you photocopied pages F 4 and F 5, because you
Box 24lettings
Adjusted
only) profit or loss for the year had more than one overseas let property, you need
Add boxes 18, 19 and 20 together. Then take off to add together the profit and losses for all your
£
boxes 21, 22 and 23 and put the total in box 24. let properties to work out the overall total.
es
24 Adjusted profit or loss for the year (boxes 18 to 20) If you’re claiming FTCR, you need to keep
minus (boxes 21 to 23) separate calculations of profit and loss to work
out the amount of UK tax for each property.
£ 1 8 7 0 0 • 0 0
Example of adjusted profit, box 24
Losses
Only fill in boxes 26, 27, 31 and 32 if you pay
If this is a negative amount (a loss), put a minus tax on the arising basis.
sign in the shaded box in front of your figure.
m Foreign Tax Credit Relief F Taxable amountallowance,
– read the notes
If you’re claiming FTCR and there are losses
If you’re claiming property income you available, you need to take off the losses in the
n the box may only have entries in boxes 14, 16 and 20. order that most benefits your claim.
Add these together, deduct
£ the amount in
box 14.1 and put the total in box 24. This cannot Column A
be a loss. £ Use the list on pages FN 3 to FN 5 of these notes
Box 24.1 Residential£ finance costs not included to find the 3-letter code for the country where
in box 17 your land or property income arose.
You can only claim 25%£ of the finance costs If you’ve properties in more than one country but
incurred on residential property (box 17). Include you’re only filling in one set of boxes 14 to 24,
the remaining 75% in£ box 24.1. This will be used put the country code of the first property in
to calculate a reduction in your Income Tax. Use column A and the codes for the others in
the working sheet on page FN 11 to work out the ‘Any other information’ on page TR 7 of your
amount to put in box 24.1. tax return.
Box 24.2 Unused residential finance costs Column B
brought forward Put the profit or loss amount from your let
Put any unused residential property finance costs property in column B.
from this property business from earlier years in
box 24.2. Any balance of the residential finance Column C
costs which is still unrelieved, may be carried Put the amount of any foreign tax paid on your
Totalof
forward to future30years taxable amount
the same – read the notes
property let income in column C.
business.
£ Column D
A For more information on the residential property Put the amount of UK tax taken off in column D.
finance costs restriction, go to www.gov.uk/guidance/
changes-to-tax-relief-for-residential-landlords-how-its- Column E
worked-out-including-case-studies
If you’re claiming Foreign Tax Credit Relief
(FTCR), put ‘X’ in the box.
Summary
Fill in this section if you receive any income from Column F
land and property abroad. You do not need to If you’re claiming FTCR, and there’s a profit
do this if you’ve claimed the remittance basis and figure in column B, put that figure in column F.
have made no remittance in the year. If you’re not claiming FTCR, the figure will be
the amount in column B, minus any amount in
Page FA 5
For more information about the remittance basis, column C.
go to www.gov.uk and search for ‘HS264’. If you’re claiming FTCR and have profits and
losses from more than one foreign property,
reduce a profit by the amount of a loss in the
Page FN 13order that most benefits your FTCR claim. A For more information on the limit on Income Tax
Then put the adjusted profits from each property reliefs, go to www.gov.uk and search for ‘HS204’.
in column F.
Where there’s a loss from any foreign property, Box 32 Total loss to carry forward to
do not fill in the column F boxes. the following year
If you made a net profit, there’s a positive amount
Box 26 Total loss brought forward from in box 25. Put in box 32, the total loss brought
earlier years forward from box 26, less any of that loss set off
If you’ve any unused losses from earlier years against the profit in box 25.
(box 32 on your ‘Foreign’ pages for the 2018 If you’ve made a net loss, there’s a minus figure
to 2019 tax year), put that figure in box 26. in box 25. Put in box 32, the total loss in box 25,
You can use this to reduce your overall profit plus any losses brought forward from earlier years
or add to your overall loss. If any of the amount (box 26), minus any amount set off against total
included in box 26 has not previously been income (box 31). The time limit for claiming this
reported, you must include details in the is 5 April 2024.
‘Any other information’ box, box 19 You’ll need the figure in box 32 to fill in the
on page TR 7 of your tax return. ‘Foreign’ pages on next year’s tax return.
Box 27 Total taxable profits
Foreign tax paid on employment,
If the figure in box 25 is a profit, take off any self-employment and other income
losses in box 26 that you want to use against your
Fill in this section if you’re claiming FTCR on
profits (up to the amount in box 25) and put the
income or gains that you’ve put elsewhere on
total here.
your tax return, including income from furnished
If the figure in box 25 is negative (a loss), leave holiday lettings in an EEA country.
box 27 blank.
If you paid foreign tax on your employment
Boxes 28 and 29 income, and this is paid by an overseas employer
Fill in columns A to F, add up the figures in: that does not have a UK payroll, (you have not
• column C and put the total foreign tax figure been provided with a P60), you must fill in the
in box 28 ‘Employment’ page to report your gross income.
• column D and put the total UK tax in box 29 Make sure that the foreign tax being claimed is
Include any amounts shown on separate sheets the ‘minimum’ due under the laws of the foreign
that you attach to the ‘Foreign’ pages. country after all deductions, exemptions, reliefs and
allowances have been claimed. Or for example, if
Box 30 Total taxable amount you work for a British company abroad.
Add up the figures in column F, including any Where the employer is paying the foreign tax on
shown on a separate sheet, and take off any your behalf, this should generally be included as
losses in box 26 that you want to set off against part of your gross pay. If you’re not sure ask your
the total amount. Put this figure in box 30 tax advisor.
(enter ‘0’ if it’s a minus figure).
If you have income from membership of Lloyd’s,
Box 31 Loss set off against total income you’ll need Helpsheet 240, ‘Lloyd’s underwriters’
In some cases, you can set off a loss against your to help you fill in this part of the ‘Foreign’ pages.
total income for the 2019 to 2020 tax year if
the loss arises because of your claim to capital A For more information, go to www.gov.uk
and search for ‘HS240’.
allowances. Any loss to be set off must be either:
• the lower of any capital allowance in box 21,
after deducting any balancing charges in box 20, Column A – Country code
or the figure in box 24 Use the list on pages FN 3 to FN 5 of these notes
• the greater of £50,000 or 25% of your adjusted to find the 3-letter code for the country where
total income your foreign income had tax taken off.
If you cannot use all your losses for the 2019 to Put that code in column A. Use a separate row
2020 tax year, you can carry the balance forward for each country.
by filling in box 32. The time limit for claiming is
31 January 2022.
Page FN 14Column C – Foreign tax paid for that year. This will now only be relevant if
If you had any foreign tax taken off your income, you’re taxable on the remittance basis and are
put the amount of tax (in UK pounds) in column C. remitting income relating to earlier years where
Do not include foreign tax paid on overseas social SWT was withheld. The following countries may
security contributions or healthcare insurance have taken SWT: Andorra, Austria, Curaçao,
premiums in this amount of tax. Gibraltar, Jersey, Liechtenstein, Luxembourg,
Monaco, San Marino, Sint Maarten and
Column F – Taxable amount Switzerland.
Put the gross amount of foreign income In the ‘Additional information’ box, box 19 on
(before tax taken off) which you’ve shown page TR 7 of your tax return, put the:
elsewhere (for example, on the ‘Employment’ • country where the foreign tax was deducted
page) in column F. You’ll need to give us the • name of foreign tax which was deducted or the
details in ‘Any other information’ on page TR 7 name of the agreement under which
of your tax return. the foreign tax was deducted
If you have a business in the UK and the gross • years when the foreign tax was deducted to
receipts include income that you’ve paid foreign which this claim for SWT relates
tax on, you need to work out the amount of profit Gains included in box 33 must also be included
that came from the overseas receipts. If the income in the ‘Capital gains summary’ pages, SA108.
is from the overseas branch of a UK business, put
the gross profits earned by the branch in column F. A For more information, go to www.gov.uk
In some cases, if your business basis period for the and search for ‘HS261’.
2019 to 2020 tax year overlaps with your basis
period for the 2018 to 2019 tax year, you may be Other overseas income and gains
able to claim FTCR.
Box 41 Gains on disposals of holdings
in offshore funds (excluding the amounts
A For more information about overlap, entered in box 13) and discretionary income
go to www.gov.uk and search for ‘HS260’.
from non-resident trusts
The rules for the disposal of an interest in an
Capital gains – Foreign Tax Credit Relief offshore fund can be complex. Ask your tax
and Special Withholding Tax adviser or read the guidance in our Investment
Boxes 33 to 40 Funds Manual and our Savings and Investment
If you’ve paid tax in a foreign country on a gain Manual if you need to fill in box 41.
and you want to claim FTCR, fill in box 33 and If you received income from a non-resident trust,
boxes 37 to 40 (in UK pounds) as appropriate. use Helpsheet 262, ‘Income and benefits from
Do not fill in boxes 34 to 36. transfers of assets abroad and income from
If you’ve more than one gain, show this non-resident trusts’ to help you fill in this box.
information on a separate sheet. Include in boxes
33, 37, 39 and 40, any amounts you put on the A For more information, go to the Investment Funds
Manual and the Savings and Investment Manual at
separate sheet. www.gov.uk/government/collections/hmrc-manuals
If you want to claim FTCR, put ‘X’ in box 38.
You do not have to work out the FTCR yourself. Box 42 If you’ve received a benefit from
If you want to work it out, use Helpsheet 261, a person abroad, or you’re chargeable on
‘Foreign Tax Credit Relief: capital gains’ to help a benefit received by you or a close family
you. Put the amount you’re claiming in box 39. member or you’re the recipient of an onward
If you’re taxable on the remittance basis and the gift that is matched to protected foreign source
remitted proceeds of a sale chargeable to Capital income, enter the value of the payment
Gains Tax had Special Withholding Tax (SWT) If you’re the settlor or a close family member of the
taken off, put the SWT amount in box 40. settlor of a non-resident trust and you’ve received,
SWT was an amount of tax taken off certain or are treated as having received, a benefit from
payments to UK residents (in addition to foreign the trust, or you’re the recipient of an onward gift,
tax). It can be set against your UK tax liability or and the benefit or onward gift is matched to the
repaid to you if the amount exceeds your liability settlement’s available protected income, enter the
value of the payment benefit received.
Page FN 15Include full details in the ‘Any other information’ Box 46 If you’ve omitted income from boxes
box on your tax return. 11, 13 and 42 because you’re claiming an
If you’re omitting income from this section because exemption in relation to a transfer of assets,
you’re claiming an exemption, see box 46. enter the total amount omitted
If this applies, you need Helpsheet 262, ‘Income Boxes 10 to 13 and box 42 do not apply as long
and benefits from transfers of assets abroad and as the purpose of the transfer and any associated
income from non-resident trusts’ to help you fill operations was not to avoid tax. For transactions
in this box. occurring on or after 6 April 2012, any income
attributable to genuine transactions is exempt,
where any liability imposed would constitute
A For more information, go to www.gov.uk a restriction on the EU Treaty freedoms (for
and search for ‘HS262’.
example, freedom of establishment or freedom of
movement of capital).
Boxes 43 to 45 Gains on foreign life insurance
An exemption is only due if actual income would
policies, life annuities and capital redemption
otherwise be chargeable.
policies and life annuity contracts
Use the details on your ‘chargeable event If you omit income for this reason from
certificate’ to help you fill in boxes 43 to 45. boxes 11, 13 and 42, you must put the total
Do not include any amount you’ve already put amount of income you left out in box 46.
in box 13. You must give details of the assets transferred,
If you have more than one certificate for the and any associated operations, the person abroad
same gain, use the amended benefits figures or concerned, the circumstances of the relevant
chargeable event gain on the later certificate. transactions and the basis of your claim in ‘Any
other information’ on page TR 7 of your tax
If you made gains from more than one identical return or on a separate sheet.
policy, add them together. If you made gains
from non-identical policies, give full details in
‘Any other information’ on page TR 7 of your A For more information about income and benefits
from transfers of assets abroad, and income from
tax return. non-resident trusts, go to www.gov.uk and search
You’ll need Helpsheet 321 ‘Gains on foreign for ‘HS262’.
life insurance policies’ to help you fill in boxes 43
to 45 if you: More help if you need it
• did not receive a certificate from your insurer To get copies of any tax return forms or
• own the policy jointly with someone else helpsheets, go to www.gov.uk/taxreturnforms
(only include your share of the gain)
You can phone the Self Assessment Helpline on
• have a ‘cluster’ of policies with the same insurer
0300 200 3310 for help with your tax return.
and one or more has specific terms
• have been a non-UK resident during the period
you’ve been a beneficial owner of the policy We have a range of services for
• paid more than £100,000 a year into the disabled people. These include
policy or policies and you received a rebate
of commission or you reinvested commission
guidance in Braille, audio and large
in the policy as additional premium print. Most of our forms are also
• consider that the gain is wholly disproportionate available in large print. Please contact
and you wish to apply to HMRC to have the our helplines for more information.
gain recalculated
A For more information, go to www.gov.uk These notes are for guidance only and reflect the
and search for ‘HS321’.
position at the time of writing. They do not affect the
right of appeal.
Page FN 16You can also read
