Income from land and property abroad section (SA100)

Add the Income from land and property aboard section to a self-assessment (personal) tax return.

Do not use this section to input details of furnished holiday lets in the EEA.l These should be entered in the Income from property section.

When entering income from overseas land and property you can choose to enter each property into a separate section, or you can place all properties from a single country into the same section. IRIS Elements aggregates the results for the tax return.

All amounts of foreign income received and foreign tax paid must be entered in sterling.

In most circumstances foreign income only needs be declared where the taxpayer is resident in the UK for all or part of the tax year. Do not enter foreign income if the taxpayer is non-resident as IRIS Elements Tax and Accounts will include all entered income on the return and computation.

How is relief given for residential finance costs?

From 2020/21 tax year relief for finance costs is no longer available as a deductible expense against rental income. Instead a tax reduction at 20% is given to reduce the income tax liability.

The tax reduction is the lower of:

• Property profit after deducting losses brought forward and...
• Adjusted total income that exceeds the personal allowance – this is income after losses and reliefs BUT excluding savings and dividends income.

Any finance costs unrelieved in this way is carried forward to subsequent tax years.

Enter land and property income

1. Open the required tax return.
2. Select the Data input tab.
3. Select Add a new section....
4. Go to the Foreign income tab.
5. Under Foreign, select Income from land and property abroad.

   For clients following the Making Tax Digital mandation, if you are completing an MTDIT final declaration, select Import HMRC values to retrieve the latest figures from HMRC.

6. Complete the section as required.
7. Select Save changes.
8. If you have more properties to add, select repeat steps 3 to 6.

Section help

Notes to help fill out this section quicker.

Land and property abroad

Field name	Description
Country	The name of the country where the property is located. If there are multiple properties in a country then you can aggregate the details into a single section or enter each property separately. If you have properties in more than one country, use a different section for each country.
Number of properties	If you are aggregating property income for a country, enter the number of properties involved. Else leave as 1.
Address	The address is not required for the tax return so is for memo purposes only.

Income

All values entered here are in GBP (£).

Field name	Description
Total rents and other receipts	This excludes chargeable premiums

Property Income Allowance (up to £1,000)

No allowance claimed against any other properties this year.

Expenses

This excludes finance costs for residential properties.

This section is ignored if Property Income Allowance is claimed. Expenses are added in a grid format.

Finance costs for residential properties

Field name	Description
Allowable as an expense	75% of costs in 2018 50% of costs in 2019 25% of costs in 2020 0% of costs in 2021

Calculating taxable profit or loss

Field name	Description
Balancing charges	Any balancing charges arising as a result of the disposal of assets or a cessation of the rental business.
Claim Foreign Tax Credit Relief?	If not selected, any foreign tax is deducted from the taxable profit.

Losses

Field name	Description
Loss from excess C.A.	The amount of any current year loss that has arisen as a result of excess capital allowance expenditure. These losses may be used for sideways relief against other income for the year.
Excess C.A. offset against other income for year	The amount of loss from excess capital allowances that should be relieved against other income for the tax year. From 2014 there are limits on the amount of loss that can be utilised for sideways relief; see HMRC helpsheet 204 Limit on Income Tax Reliefs.