Residence, overseas income and foreign tax
Foreign income tax return accountant in Cardiff
We prepare UK tax returns for overseas property, pensions, employment, dividends, interest and gains, including residence analysis and Foreign Tax Credit Relief.
UK reporting position
When foreign income belongs on a UK tax return
UK residents are normally assessed on worldwide income and gains unless a specific relief applies. Non-residents may still have UK-source income or UK filing obligations.
Overseas property income
Foreign rent is calculated under UK principles, converted to sterling and reported separately from the UK property business.
Foreign pensions
The pension type, treaty, country of residence and foreign deductions must be established before the UK treatment is decided.
Dividends and bank interest
Gross income, withholding tax, ownership, currency conversion and the nature of overseas funds or entities can affect the return.
Employment and remote work
Where duties were performed, residence, PAYE, overseas withholding and treaty provisions may all be relevant.
Foreign gains
The UK computation can use different cost, pooling and exchange-rate rules from the country where the asset was located.
Trusts, estates and offshore entities
These require a separate technical review; the amount transferred to a UK bank is rarely enough to determine the taxable figure.
Start with the government’s UK foreign income overview.
Complete foreign income service
What our foreign income tax return service includes
We establish residence and the filing scope, build a country-by-country income schedule and reconcile foreign statements to the figures required for the UK tax year.
Foreign tax is checked against treaty and credit-relief rules. The relevant foreign, residence and main-return pages are then prepared consistently for your approval.
Included in the work
- residence and filing-scope review;
- country and income-source schedule;
- sterling conversion and UK-year allocation;
- foreign tax and treaty review;
- relevant supplementary pages;
- draft approval and online filing.
Double taxation
Foreign Tax Credit Relief is calculated, not assumed
Paying tax overseas does not automatically mean the same amount can be deducted from the UK bill. We first confirm the income and which country has taxing rights, then verify that the foreign amount is a qualifying tax actually suffered by the UK taxpayer.
The credit is normally limited by the UK tax attributable to that source. Excess foreign tax may not be refundable by HMRC, and a treaty claim or overseas repayment may be the correct route in some cases.
Identify treaty rights
Residence, source and income article.
Verify foreign tax
Assessment, withholding and payment evidence.
Calculate the UK limit
Source-by-source UK liability and available credit.
New residents from 6 April 2025
The four-year foreign income and gains regime is an annual claim with consequences
The FIG regime replaced the remittance basis from 6 April 2025. A qualifying new UK resident may claim relief on eligible foreign income and gains arising during their first four UK-resident years after at least ten consecutive tax years of non-UK residence.
A claim can be made for selected sources, but claiming relief causes specified personal tax allowances to be lost. Eligibility, disqualified income, arrival history and the effect on adjusted net income must be reviewed before making the claim.
Historic funds remain relevant
Pre-April 2025 income and gains, former remittance-basis years and transfers from mixed offshore accounts can require separate tracing. The new regime does not rewrite the character of old funds.
Check the official FIG conditions →Internationally connected people in Cardiff
An ordinary working life can still create a cross-border tax return
Professionals moving to Cardiff may retain an overseas home, pension, bank account or investment portfolio. Others work remotely for a foreign employer or receive income from a family business abroad. Each source needs its own UK analysis even when the amounts arrive in one account.
We organise the records by country, source and UK tax year so the return explains the position coherently rather than treating every overseas transfer as income.
Records normally required
- travel calendar and residence history;
- foreign income and tax statements;
- property income and expense records;
- pension or employment documents;
- exchange-rate and payment evidence;
- earlier UK and overseas filings.
Connected tax work
Related services and calculations
These subjects remain separate pieces of work, but the underlying figures may need to agree.
Self Assessment tax returns
Bring UK and overseas sources into one complete filing.
Open this page →Foreign and UK capital gains
Review disposal values, currency conversion and reporting.
Open this page →Cross-border tax advice
Obtain defined advice on residence, treaty or FIG questions.
Open this page →Earlier foreign income disclosure
Correct income or gains left out of previous returns.
Open this page →Clear starting fee
Scope and price are agreed before work begins
A foreign income tax return starts at £400 plus VAT. Several countries, residence or split-year analysis, FIG claims, trusts, offshore funds, gains and missing records require a separate scope.
Common questions
Questions about foreign income tax return preparation
The answer can change with the period, records and connected transactions. These are the usual starting points.
Do I report foreign income if I leave it overseas?
For UK residents, the normal starting point from 6 April 2025 is taxation on worldwide income and gains as they arise. A qualifying FIG claim or another specific rule may alter that result.
Can I use the exchange rate shown by my foreign bank?
The conversion method must be reasonable and consistent with the relevant dates and income source. We retain the rate basis used with the calculation.
Does a double tax treaty mean no UK tax return is needed?
Not automatically. A treaty may allocate taxing rights or provide relief, but the income and claim may still need to be disclosed on the UK return.
Can you deal with more than one country?
Yes. Each country and source is scheduled separately so income, foreign tax, treaty treatment and sterling conversion remain traceable.
Does the service include residence advice?
A standard filing-scope review is included. Detailed Statutory Residence Test, split-year, treaty residence or FIG planning is separately scoped where required.