In this guide

You live in the UK and rent out a home in China or another country. Do you need to report the rent in the UK? Start with whether you're UK resident for tax, then how to work out the profit, how to report it, and what happens to tax you've already paid where the property is.

Quick answer

  • If you're UK resident for tax: rent from property abroad is usually taxed in the UK. Since April 2025, it doesn't matter whether you bring the money to the UK.
  • If you've newly arrived and qualify: you can claim the foreign income and gains (FIG) regime for your first 4 tax years, but you have to claim it each year and it has a cost.
  • If you're not UK resident: rent from property abroad isn't taxed in the UK.
  • If your UK and overseas property income together is £1,000 or less a year: you usually don't need to tell HMRC.
  • If you've already paid tax where the property is: you can usually claim Foreign Tax Credit Relief on your UK return, but it may not cover all of it.

Step 1: are you UK resident for tax?

UK residents usually pay UK tax on all their income, including income from abroad. Non-residents don't pay UK tax on foreign income. To work out your residence status, and whether a new arrival can use the 4-year FIG regime, see the guide to foreign income.

If you use the FIG regime, note this: in a year you claim it, you can't get the tax reduction for mortgage interest and other finance costs on your overseas property, and any unused amount carried forward is reduced to nil.

Property abroad is worked out separately

  • All your properties abroad together count as one overseas property business, kept separate from any UK lettings.
  • If you have more than one property abroad, a loss on one can be set against profit on another property abroad.
  • A loss on property abroad can't be set against UK rental profit, and a UK loss can't be set against overseas profit.

How to work out the profit

It works much like letting property in the UK: rent minus allowable expenses. For which expenses you can deduct, and the difference between repairs and improvements, see the guide to UK rental income.

  • Mortgage interest isn't deducted as an expense. If you let residential property as an individual, you get a tax reduction at the basic rate (20% for 2026 to 2027) instead, and this applies to homes abroad too.
  • The £1,000 property allowance: there is one £1,000 allowance for your UK and overseas property income combined, which you can split between them as you choose. If you use the allowance, you can't also deduct your actual expenses.
  • If you claim the tax reduction for mortgage interest, you can't use the £1,000 property allowance.

Converting foreign currency into pounds

HMRC's rule is to convert income into pounds at the exchange rate on the day it arose abroad. So keep the date and amount of each rent payment.

Tax already paid where the property is

  • The country where the property is will usually tax the rent too. On your UK return, you can usually claim Foreign Tax Credit Relief, so the tax paid abroad reduces your UK tax.
  • How much you get depends on the tax treaty between the UK and that country, and it may not cover all of it. You get less if the UK tax on that income is lower.
  • When you claim the relief, you may need to work out the profit or loss for each property separately.
  • Keep proof of the tax you paid abroad.

How to report it

  • Use the foreign section of your Self Assessment tax return.
  • If you don't usually send a return, register for Self Assessment by 5 October after the end of the tax year you had the income.
  • Deadlines: a paper return is due by 31 October after the end of the tax year, and online returns and payment by the following 31 January. For 2026 to 2027, that's 31 October 2027 and 31 January 2028.

Example (worked out using GOV.UK's rules)

Say your wages already use up your Personal Allowance and you're a basic rate taxpayer. You have one property abroad with rent of £9,000 for the year once converted into pounds, allowable expenses (letting agent fees, repairs and so on) of £1,500 and mortgage interest of £2,000.

  • Taxable profit: £9,000 − £1,500 = £7,500 (mortgage interest isn't deducted as an expense)
  • Tax at 20%: £7,500 × 20% = £1,500
  • Tax reduction for mortgage interest: £2,000 × 20% = £400
  • UK tax: £1,500 − £400 = £1,100

This is before Foreign Tax Credit Relief. If you've already paid tax on this rent where the property is, you can claim relief on top; see above for how much.

Owning with someone else

Each owner reports their own share of the income, and each owner gets their own £1,000 property allowance.

Readers ask

The rent stays abroad and never comes to the UK. Do I still report it?

Yes. The remittance basis ended on 6 April 2025. UK residents report foreign income when it arises, whether or not the money comes to the UK, unless they qualify for and claim the 4-year FIG regime.

My property abroad made a loss. Can I set it against rent from my UK property?

No. Property abroad and UK property are worked out separately, and losses can't be set against each other. A loss abroad can be carried forward against future profits from property abroad.

Does rent from abroad count for Making Tax Digital?

Yes. If you're UK resident for tax, your income from property abroad (before expenses) is added to your self-employment and UK property income to see whether you're over the Making Tax Digital threshold. Over £50,000 for 2024 to 2025 means using it from 6 April 2026. Over £30,000 for 2025 to 2026 means from 6 April 2027. Over £20,000 for 2026 to 2027 means from 6 April 2028. See the guide to Making Tax Digital.

What if I sell the property abroad?

UK residents who sell property abroad usually need to think about UK Capital Gains Tax. This guide doesn't cover that.

Next steps

  1. Check whether you're UK resident for tax this tax year.
  2. Record the date, foreign currency amount and exchange rate for each rent payment and expense.
  3. Keep proof of your mortgage interest and of tax paid abroad.
  4. If you need to file and haven't registered, remember 5 October.

Sources checked: 30 October 2026 · Tax year: 2026 to 2027 · Sources are official GOV.UK pages and HMRC internal manuals.

This is general information, not tax advice for your situation. How it applies depends on your full circumstances.