Ask a tax advisor on the topic of Double taxation

Property rented in England

March 10, 2016 | 30,00 EUR | answered by StB Patrick Färber

Dear Sir or Madam,

My fiancée (an English citizen with a British passport) has been living and working in Germany for the past two years (receiving her salary from Germany) and also rents out a property in England. The expenses related to the rental property exceed the rental income, resulting in negative income. Will these losses be tax-deductible by filling out Form V, directly reducing the taxable income (vertical offsetting), or should Form AUS be additionally filled out to apply for a negative progression reservation that reduces the tax rate. Or is the situation completely different?
In short: What should be entered in Form AUS? Should the rental income and expenses be listed separately as income (line 5) and negative income (line 31 or line 45?) or should they be offset against each other and the resulting negative amount entered - in which line? Should Form AUS be filled out at all?
Background: No tax was imposed on the rental income in England (around 5500 pounds), so no withholding tax was paid. Concerns: Income tax 2014.

Yours sincerely,
Seeker123

StB Patrick Färber

Dear inquirer,

The mentioned (negative) earnings do not have to be reported in the German tax return at all, as the progression clause (both positive and negative) no longer applies to rental income from properties in the EU!

Best regards,

StB P. Färber