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English tax on rental in Thailand

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1895whiffer

I have a summer seasonal business' in the Uk.My accountant say I have to have a accountant in Thailand for the three flats I own and rent out in Koh Samui and pay English tax on them this cant be right.Is this true I thought you cant take out of Thailand the money you earn there.I've since sacked the accountant.

Retiree

It doesn't matter whether you repatriate the money you've earned from rentals in Thailand or not. If you're tax resident in the UK then you have to pay UK tax on your global income, although you may be able to offset any tax levied by the Thai tax authorities under a double taxation agreement.

kevh

As retiree says, you do have to pay tax to the UK from any rental income on your properties in Thailand, I agree with you that it can’t be right but it is unfortunately. I was also told by HMRC that if I sold my Thai property for a profit that they would also want a cut of that too! I asked them what happens if I sold it at a loss? which to be fair is highly likely, would they make up the difference? 😄 Doesn’t work like that apparently. Seems that HMRC can’t lose.

Leeds forever!

As retiree says, you do have to pay tax to the UK from any rental income on your properties in Thailand, I agree with you that it can’t be right but it is unfortunately. I was also told by HMRC that if I sold my Thai property for a profit that they would also want a cut of that too! I asked them what happens if I sold it at a loss? which to be fair is highly likely, would they make up the difference? 😄 Doesn’t work like that apparently. Seems that HMRC can’t lose.
-@kevh

Please tell how any authority in the UK would know if you have properties in Thailand. If you officially move to Thailand and have an income,it's in Thailand you're supposed to pay tax.

Retiree

Please tell how any authority in the UK would know if you have properties in Thailand. If you officially move to Thailand and have an income,it's in Thailand you're supposed to pay tax.
-@Leeds forever!


If you look at the OP's profile you'll see that he's living in the UK, not Thailand, so like I said, he's liable for UK tax on his global income. Whether he chooses to risk the UK authorities not becoming aware of his Thai property portfolio is up to him, but the penalties for tax evasion are severe. Many countries have mutual information disclosure agreements with the UK, but I don't know if Thailand is one of them.

Leeds forever!

Please tell how any authority in the UK would know if you have properties in Thailand. If you officially move to Thailand and have an income,it's in Thailand you're supposed to pay tax.
-@Leeds forever!

If you look at the OP's profile you'll see that he's living in the UK, not Thailand, so like I said, he's liable for UK tax on his global income. Whether he chooses to risk the UK authorities not becoming aware of his Thai property portfolio is up to him, but the penalties for tax evasion are severe. Many countries have mutual information disclosure agreements with the UK, but I don't know if Thailand is one of them.
-@Retiree

"Many countries have mutual information disclosure agreements with the UK."

Really? I doubt that. If you said the US, I would maybe agree. You think Thai banks keep tabs on UK citizens accounts and then inform authorities in the UK? I will say, No, they don't. But if you're an US citizen, that's another story. There's a reason why many bank branches in Thailand don't allow US citizens to open accounts. They're fed up with the paperwork about money laundering. Have you heard about FATCA?

Retiree

Yes, I've heard about FATCA but if you think it's only the US that obtains financial information about its nationals overseas, you're naive. Click on "List of countries who have agreed to share financial account information" in the URL and you'll see that the list of countries sharing information with the UK authorities is extensive and growing. Thailand is scheduled to begin doing so this year.

Maxi Mari

Leeds forever is right, very complicate matter, that's why when opening an account Thai banks want you go first to your embassy and get a statement to avoid they report and so you report yourself.

International bank agreements between countries are in place but to research all old accounts is a hard task, they will do on new accounts opening from now on.

On the other hand if you did not officially state in your country that you own a property in Thailand then is unlikely that they can pretend any tax from you for the rent or even the sales, specially if you get the rent directly. And the property chanote certificate is in Thai language including your name in Thai letters. I suppose is very difficult to discover for the UK tax office the foreign owners registered in all land offices arround Thailand. An institution that still operates in such an old mentality system where also numbers are still written in ancient Thai numberings.

Maxi Mari

I have a summer seasonal business' in the Uk.My accountant say I have to have a accountant in Thailand for the three flats I own and rent out in Koh Samui and pay English tax on them this cant be right.Is this true I thought you cant take out of Thailand the money you earn there.I've since sacked the accountant.
-@1895whiffer

You can take out money cause you can show that to buy the properties you first brought in foreign currency. I think you did cause to buy they must have asked a bank statement where the money came from.


Depends how you get the rent for the Samui flats, cash on your Thai bank account or via an agent in between? They sure don't send you this money to UK right?


When someone brings out and send back to UK with official channels then for sure the UK bank will inform the Tax office of foreign incoming money and then tax office will apply the reimport tax legislation and ask to pay.

And in same cases you have even to inform them in advance to get a reimport permit or you could face a kind of extra fine.

Leeds forever!

I have a summer seasonal business' in the Uk.My accountant say I have to have a accountant in Thailand for the three flats I own and rent out in Koh Samui and pay English tax on them this cant be right.Is this true I thought you cant take out of Thailand the money you earn there.I've since sacked the accountant.
-@1895whiffer
You can take out money cause you can show that to buy the properties you first brought in foreign currency. I think you did cause to buy they must have asked a bank statement where the money came from.

Depends how you get the rent for the Samui flats, cash on your Thai bank account or via an agent in between? They sure don't send you this money to UK right?

When someone brings out and send back to UK with official channels then for sure the UK bank will inform the Tax office of foreign incoming money and then tax office will apply the reimport tax legislation and ask to pay.
And in same cases you have even to inform them in advance to get a reimport permit or you could face a kind of extra fine.
-@Maxi Mari

No bank in the UK will inform the tax revenue service about received funds unless the sum is very high, and they might ask for the source. It might be your own money being repatriated, like the 800k used for immigration issues. Anyway, nothing tells them the money is an income earned abroad. If you want to avoid any questions,don't send a huge chunk of money.

blackjack2010

@kevh Ask HMRC for the clause policy procedure that says that - read it carefully as it may not say that

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