Please can someone advise me?
I am a UK cityzen and a UK resident. If I buy a property aboard (outside the EU in fact) and let it, but accumulate the rental income in a bank account abroad and do not repatriate the money to the UK, is the income subject to UK tax?
thank you,
Robert
Yes, assuming you are UK domiciled.
Thank you Doug.
I assume there would be UK Capital Gains Tax as well.
Robert
Very possibly. There is likely to be a potential tax charge also in the jurisdiction of where the property is situated. You may need to consult the relevant Tax Treaty (if any). If none,the UK should give unilateral tax relief for any foreign tax paid (but no refund).
Be wary of forming a company to hold the property to avoid any inheritance/succession tax in the foreign country, as this could trigger UK income tax on any director or shadow director.
Professional advice essential, IMHO.
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