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UK property income disclosure

Posted 5 February 2016 under Tax Questions



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Andy says:
5 February 2016 at 11:08

I am due to become a SA tax resident in the next tax year if I stay (not my intention to stay, but may become a SA tax resident due to physical presence test). I have income from Uk properties which is declared on my uk tax return and uk tax is paid. I still have some net income. Questions:

1. How is this noted on my SA tax return. Ie after uk tax is paid? Or before with a credit for tax paid? But will be paying tax twice?

2. Where is this to be put on the tax return?

3. When becoming a tax resident part way through a tax year, does the full years income taxed or from the date I become a sa tax resident?

Many thanks for your help.

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TaxTimTaxTim says:
5 February 2016 at 11:37

You will never be paying tax twice, you will begin paying tax from the moment you become a resident only and that income will be included in your tax return. You would include the rental income under the foreign income section, there is place there for a foreign tax credit as well.


Andy says:
5 February 2016 at 12:06

Thanks. If understood correctly, then income is pro rata ed from the date resident?

Is gross income or net income shown? If I show net income after expenses and tax, then the Residual income is taxed again in SA as its brought into taxable income and taxed at a marginal tax rate? So taxed again. If I lived in the UK I have already paid tax and its final?


TaxTimTaxTim says:
5 February 2016 at 13:19

If you show the net income, so after expenses and then there is a space for you to include the tax as well. SARS will work out how much tax is owed and deduct/offset the taxes already paid.


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