Foreign Property Income

This guide explains how to manage foreign property income submissions in My Tax Digital, including income & expenses, adjustable summaries, and annual adjustments & allowances.

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1. The Foreign Property Income Hub

Prerequisites

The Foreign Property section appears in My Tax Digital automatically once foreign property is registered as one of your income sources with HMRC. It will not appear if ITSA auth has been completed for self-employment or UK property only. To check or add it, log in to your HMRC online services account, go to Income Tax > View and manage Making Tax Digital for Income Tax, and check your registered income sources. HMRC typically processes new income source registrations within a few working days before they appear in My Tax Digital. See Troubleshooting: Income Sources Not Appearing for full steps.

If you no longer receive foreign property income (e.g. a property has been sold), you can cease the income source via your HMRC online account. This removes the quarterly filing obligation from the cessation date onwards — any submissions due up to that date must still be completed.

All income and expense figures must be entered in pounds sterling (GBP). Convert foreign currency receipts using the exchange rate on the date of the transaction, or an average rate for the period if your accountant confirms this is appropriate.

The Foreign Property Income screen is the main management hub for a foreign property business. Its structure mirrors the UK Property hub.

Card	Description
Obligations	View open and fulfilled income & expense submission periods.
Income & Expenses	Retrieve and review previously submitted cumulative income and expense figures.
Adjust Income & Expenses	Submit or update an Adjustable Summary.
Adjustments & Allowances	Submit annual adjustments and capital allowances.

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2. Managing Foreign Properties (2026-27 onwards)

From tax year 2026-27, foreign property income is tracked at the individual property level rather than grouped by country, and HMRC requires each property to be registered with a property ID before you can submit. You must register your properties before your first 2026-27 submission — attempting to submit without doing so returns an unhelpful HMRC error rather than a clear message asking you to register.

Navigating to the Foreign Properties list: this screen is not a hub card — reach it via Income & Expenses, then Prepare update, then click Manage properties on the update screen. This applies whether the income source is in Accounting or Bridging mode.

2.1 The Foreign Properties List

The Foreign Properties screen lists all properties registered for this income source.

Each entry shows the property name, country, and — where applicable — the date the property ceased to be let. Click + New to register a new property.

2.2 Registering a Property

Field	Description
Property name	A name to identify the property (e.g. "Villa Rosa" or "Bob & Bobby Co").
Country	The country in which the property is located.

Click Submit to save. The property will appear in the list and become available to select when submitting income and expenses.

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3. Income & Expenses

Each submission period has a separate Income & Expenses record. From 2026-27, figures are provided per registered property rather than per country.

3.1 Viewing Income & Expenses

The view screen shows all submitted income figures grouped by property. Income fields per property:

Field	Description	SA106
Total rent and other income	Total rental income and other receipts from this property.	Box 14
Other property income	Other income not included above.	Box 14
Premiums of lease grant	Taxable premiums received for granting a lease.	Box 16
Foreign tax taken off or paid	Foreign tax deducted from or paid on income from this property.	Box 28
UK tax taken off	Any UK tax already deducted from the income from this property.	Box 29
Foreign Tax Credit Relief	Foreign Tax Credit Relief claimed against UK tax on this income.	Box 28

Click Prepare update to submit figures for the current period.

3.2 Updating Income & Expenses — Accounting mode

Select one or more properties from the Select properties dropdown. A separate income section appears for each selected property, pre-filled from your linked business transactions. Click Manage properties to add or edit properties in the list.

In Accounting mode, your transactions are recorded in the linked business's Transactions section — not on this hub. To get there, click the business name in the left-hand sidebar or use the Linked Business button at the top of this screen.

Review the figures for each property and click Submit.

3.3 Updating Income & Expenses — Bridging mode

In Bridging mode, select the relevant properties from the Select properties dropdown, then import cumulative figures from a spreadsheet:

1. Download the template below and populate your figures for each property.

Download example SA106 Foreign Property template (XLSX)

2. Click Import figures, select your completed spreadsheet, and click Upload.
3. Review the imported income figures for each property and click Submit.

The submission period dates (From/To) are editable when updating.

Expenses

Choose Consolidated (single figure) or Granular (individual categories) for each property.

Field	Description	SA106
Premises running costs	Rent, rates, insurance, ground rents and other costs.	Box 17a
Repairs and maintenance	Cost of maintaining and repairing the property.	Box 17b
Financial costs	Loan interest and other financial costs (non-residential).	Box 17c
Professional fees	Legal, management and other professional fees.	Box 17d
Cost of services	Cost of services directly provided to tenants.	Box 17e
Other	Any other allowable property expenses not covered above.	Box 17f
Travel costs	Car, van and travel costs incurred in managing the property.	Box 17g
Residential financial cost	Mortgage interest on residential lettings (Section 24 restriction applied by HMRC).	Box 24
Brought forward residential financial cost	Unused residential financial costs brought forward from a prior year.	Box 24

Residential financial cost and Brought forward residential financial cost are currently only available when Granular is selected. If you need to claim these and want to use Consolidated for your other expenses, switch to Granular and enter your other expense categories individually instead.

Section 24 - mortgage interest: Enter the mortgage interest amount attributable to your share of the property. You do not need to apply the finance cost restriction yourself - HMRC applies the Section 24 restriction automatically. Non-residential finance costs (e.g. commercial property mortgages) should be entered under Financial costs above instead.

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4. Adjustable Summaries

Note: Quarterly Income & Expenses submissions (section 3) moved to property-level in 2026-27. Adjustable Summaries and Adjustments & Allowances (sections 4 and 5) currently remain country-level — figures are still grouped by country, not by individual property. This reflects the current HMRC API; it may change in a future version.

An Adjustable Summary (BSAS) allows HMRC to adjust the cumulative income and expense figures already submitted for a period. It is required before your final tax calculation can be performed.

4.1 Updating an Adjustable Summary

When updating in Bridging mode, provide the adjusted income and expense figures per country.

First, indicate whether adjustments are required (Yes/No). Then select the relevant countries and provide per-country figures:

Income (per country)

Field	Description	SA106
Total rents received	Total rental income from properties in this country.	Box 14
Premiums of lease grant	Taxable premiums received for granting a lease.	Box 16
Other property income	Other income from foreign properties in this country.	Box 14

Expenses (per country)

Choose Consolidated (single figure) or Granular (individual categories). Granular categories include: Premises running costs, Repairs and maintenance, Financial costs, Professional fees, Cost of services, Travel costs, and Other.

Residential financial cost cannot be adjusted here. This value should be included in your quarterly Income & Expenses submissions instead (see §3), with any changes made at Quarter 4.

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5. Adjustments & Allowances

The Adjustments & Allowances screen records annual capital allowances and property-specific adjustments. This corresponds to the adjustments section of your SA106 (Foreign) supplementary page.

Foreign property adjustments and allowances are also provided per country using the country selector.

5.1 Viewing Adjustments & Allowances

The view screen shows currently submitted figures grouped by country. Click Prepare update to unlock editing.

5.2 Updating Adjustments & Allowances

Select the relevant countries, then provide figures per country:

Adjustments (per country)

Field	Description	SA106
Private use adjustment	Reduction for any private use element of the property.	Box 19
Balancing charge	Charge arising on the disposal of a capital asset previously claimed against.	Box 20

Expenses (per country)

Field	Description	SA106
Annual investment allowance	100% first-year allowance on qualifying plant and machinery.	Box 21
Property income allowance	The £1,000 property income allowance, if claimed instead of actual expenses.	Box 14.1
Other capital allowances	Allowances for equipment and vehicles in this country.	Box 21
Structures & Buildings Allowance	Annual SBA on qualifying commercial building expenditure.	Box 22.1
Electric charge-point allowance	100% first-year allowance on electric vehicle charging equipment.	Box 22.2
Zero-emission car allowance	100% first-year allowance on new zero-emission cars.	Box 21.1