Declare capital gains?

HMRC Admin, I'm a BNO visa holder and arrived UK in Aug 2021. I sold my property in Hong Kong, which was my main residence, in May 2021 . As it happened before I became a UK resident, am I right that I do not need to declare this to HMRC? Thanks.

Hi

Yes that is correct.

Thank you

HMRC Admin, With reference to the situation above, between April 2021 to July 2021, I had salary income in Hong Kong, a little amount of dividends and interests from shares. As these income were generated before I became a UK resident, am I right that I do not need to declare these to HMRC as well? Thanks.

HMRC Admin, Sorry I'm confused as I learned from other social media that if I became a tax resident, I have to declare all my income for the whole tax year. Is that mean I need to declare the income from April 2021 to April 2022 even though I arrived UK in Aug 2021? If yes, may I know how to apply the split year treatment? As mentioned in my first message regarding the sale of my property in May 2021, you agreed that I do not need to declare this to HMRC, is that because it was my main residence only? Grateful for your advice please. Thanks.

Hi,
 

You will need to review the guidance on residency and take the statutory residency tests.  The result of the tests will determine if you need to record this income.  I you do need to declare it, you would do so in the foreign sections SA106 and claim a credit for up to 100% of the overseas tax deducted. See : RDR3 Statutory Residence Test   . Thank you.

HMRC Admin, I've taken the statutory residency tests and meet the criteria of case 4 ~ starting to have a home in the UK only. My situation was: ~ arrived UK in Aug 2021, stayed in BnB until 30 Jan 2022, moved to my UK home property on 31 Jan 2022 (the completion date of the property was 20 Dec 2021). Stayed over 183 days in UK from Aug 2021 to end of the 2022 tax year. Can you kindly advise on the following? (1) the start date that I have to declare my foreign income (such as salaries, dividends, interests) and capital gain (from sale of main residence) ~ is it the date I arrived UK (Aug 2021)? Or the date I moved to my UK home (31 Jan 2022)? Or from the beginning of the tax year (6 Apr 2021)? (2) the start date of split year treatment ~ is it 31 Jan 2022? Thank you.

Hi Spuse,
If you qualify for split year then you only report any foreign income for the UK part of the year:
RDRM12000 - Residence: The SRT: Split year treatment: Contents
If you do not qualify then you will need to report all your foreign income to the:
Tax on foreign income
The guidance at RDRM12150 at www.gov.uk will help you work out if split year treatment applies.
If the property was your only and main residence for the whole period of ownership, there will be no gain to report.
Thank you.


 
 

Hi Spuse,
It is the date you arrived in the UK.
Thank you.