Random RCBO Trip...What Next?

[TonyBlur]

Hi,

My wife lives with me in the UK, she does not work at present, she's been leaving here 5 years+.

She owns a condo in BKK which she started renting last year.

I wanted to check if she should do a tax return or not (income from foreign property)... would you bother? I know some countries have bilateral arrangements...

Thanks

Tony

[voodoomagicman]

I would not declare it, if you are able to do without the money in the Uk and pay the relevant tax in thailand why mention it?

[naboo]

A simple google.... http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_10013347

So yes. Pay tax on the profit on rental income. Any tax paid in Thailand would count as a credit against your UK tax.

[givenall]

In my opinion, the government have no rights in collecting taxes when it goes across borders, so declare what you really have to and keep more for yourself

This is what the big guys/business do anyways

[Darrel]

... the government have no rights in collecting taxes when it goes across borders.....

I think the US revenue service would disagree with you. The offspring of Uncle Sam are liable to US tax forever, no matter where they live or where they earn their income. Britain only taxes people who live there, or people who earn money there.

[12DrinkMore]

I think the US revenue service would disagree with you. The offspring of Uncle Sam are liable to US tax forever, no matter where they live or where they earn their income. Britain only taxes people who live there, or people who earn money there.

Yet.....

[tezzaaa]

I live in uk and have rental properties in france and declare revenue in my yearly tax return. The uk taxes learnt about my properties as soon as I bought them, they sent me a letter. So I think this is why the starter of this thread is asking the question...

Btw, he said he was in uk not us...

[Darrel]

The uk taxes learnt about my properties as soon as I bought them,....

Of course they did; your properties are in the EU and there is full exchange of information there.

You cant whistle in the EU without 27 governments knowing about it.

[121Advice]

If your wife/partner has any overseas income and is 'ordinarily resident' in the UK then yes - you need to declare it. However, unless she is a property magnet and/or has more income from elsewhere, the rent would have to exceed her income tax 'nil rate band' (£7,474 2011/12) before any tax is due; and then at the lowest rate first etc..

On top of this - many owners [annually] conveniently find costs to offset some of the rental income i.e. maintenance, redecorating, agent fees etc - all of which can be offset against the gross rent received. Any local taxation can also be deducted under the dual partisan tax treaty Thailand has with many countries, including the UK.

Another option if she has a high income well in access of the threshold mentioned above, would be to place a minority holding in another family name (possible transfer of ownership fees apply!!) which would dilute the income in her name proportionately. This may not be feasible if the figures involved are relatively small - but certainly it is a route high net worth individuals/couples have taken in the past.

Of course many will simply not declare any rental income, if it is received in Thai Baht and remains in Thailand and not repatriated to a UK account. If any element of the rental income is transferred to the UK - then don't think for one minute the Revenue will turn a blind eye to it - You might get away with it for several years - but when they do catch-up with you, you WILL be liable to huge underpayment penalties that would cripple you!! And yes, HMRC are very much in bed with the Thai tax authorities and could force-sell the condo prior to any bankruptcy proceedings - not matter what, they will get their dues ) If the money remains in Thailand - well, your wife can chose to be the white knight or dark horse.. Up to her!

[TonyBlur]

Hi all,

Thank you for your replies.

My wife is not planning in repatriating any money from Thailand, we are planning on leaving it there. I therefore only wanted to find out if the UK tax authorities would find out about the property she owns in Thailand? i.e. do the Thai and UK govt exchange information?

[jay1980]

Hi all,

Thank you for your replies.

My wife is not planning in repatriating any money from Thailand, we are planning on leaving it there. I therefore only wanted to find out if the UK tax authorities would find out about the property she owns in Thailand? i.e. do the Thai and UK govt exchange information?

I have a condo in Thailand that I rent out and the money stays in Thailand in my Thai K-bank account. As a freelance worker I have an accountant in the UK and I asked her this question. She said officially I should declare the money, but the UK tax authority would have no visibility of this money and unofficially I should not bother.