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Foreign rental income

  1. Overview
  2. What expenses and deductions are allowed?
  3. What expenses and deductions are not allowed?
  4. How to calculate your taxable foreign rental income
  5. Foreign rental income and double taxation

What expenses and deductions are not allowed?

You cannot claim:

  • pre-letting expenses
  • post-letting expenses
  • capital expenditure
  • the cost of your own labour if you carry out repairs to the property
  • the cost of travelling to your property.

You can only claim expenses for the term of a lease. The exceptions to this are expenses such as letting fees, advertising fees and legal fees before the first letting.

You cannot claim expenses or deductions for any time that you or others stay in the property rent free. You must divide the expenses and deductions between that period of time and the time that it was rented out. Rent-a-room relief does not apply to rental income from foreign properties.

Next: How to calculate your taxable foreign rental income

Published: 21 January 2025 Print this page

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