1. Home
  2. UK Finance Discussions
  3. foreign (European) assets, income, earnings etc...

foreign (European) assets, income, earnings etc...

Theoretical question(s):

Does anyone know how income and assets owned by UK domiciled people in foreign (European) countries are dealt with under UK tax legislation.

e.g. foreign pensions, foreign properties, income from savings abroad, etc...

Are they to be dealt with under the tax regime of the country that they exist in or do they all become subject to UK tax legislation.

In particular, is a second property in Europe treated as if it was a second property in the UK? i.e. CGT upon sale (subject to any CGT exemptions/allowances)

I also assume that the value of the foreign property has to be included in the estate upon death for the purpose of UK inheritance tax. Am I right?

What will the host country have to say about this? i.e. are there any situations when someone owning assets or taking an income abroad will end up being taxed twice (once by their country of residence and once by the country where the asset resides)?

cheers, RM

Reply to
Reestit Mutton
Loading thread data ...

Generally speaking, an individual who is resident, ordinarily resident, and domiciled in the UK will be taxed on their world-wide income and gains and assets by the UK tax authorities, irrespective of whether any funds/monies have been remitted back to the UK.

This general rule can be modified by Tax Treaty, if another tax jurisdiction is involved. If there is no such Treaty, the UK will allow unilateral tax relief.

Reply to
Doug Ramage

Looks like I'll need to check for a country-specific treaty then. I assumed that there would be a European-wide standard in place for such situations by now.

cheers, RM

Reply to
Reestit Mutton

EU tax law policy, and EU BIT (commercial treaty) policy are in a mess. On the latter, there is periodic exemption from the Commission monopoly of such treaties. On the former, there is simply insufficient co-ordination yet of tax policy. How to deal with countries (France, Switzerland (the latter not EU/EEA, but having establishment treaties in force since June 2002) have wealth taxes, not deductible in computing a foreign tax credit for the income tax they partially replace).

Reply to
Tam

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.