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Posted Thu, 15 Sep 2022 21:42:20 GMT by KW Leung
Hi, I retired from a company in Hong Kong and have been receiving a monthly pension in Hong Kong dollars after retirement. I am now a UK resident. Is my monthly pension taxable in the UK? If affirmative, what exchange rate shall I use in my tax return? Thank you.
Posted Tue, 20 Sep 2022 14:51:20 GMT by HMRC Admin 17

Hi,
 
UnderArticle 17 of the Double Taxation Treaty with Hong Kong, the pension is only taxable in Hong Kong and
should not be declared in the UK .

Thank you.
Posted Mon, 26 Sep 2022 10:51:32 GMT by KW Leung
Thank you for your reply. 1). Since I came to the UK in July 2021 and did not work in the tax year 2021-2022, I am going to apply for split year treatment in my self assessment tax return to report my income from saving and dividends from unit trusts investment in Hong Kong, Apart from SA100, SA106 and SA109, do I need to file other forms? Can I file them online? 2). I am domiciled outside the UK. If I use the arising basis for this tax year, can I switch between the arising basis and the remittance basis in future years? 3). I did not have any capital gains in the tax year 2021-2022. Instead, I incurred capital losses in the disposal of some unit trusts. Do I need to report the losses in my tax return? If affirmative, which other forms should I file together with my tax return? Can I use my capital losses this year to offset any capital gains in future years? Many thanks.
Posted Tue, 27 Sep 2022 15:00:41 GMT by HMRC Admin 2
Hi,
  1. Yes, you can file online. However, as you need the SA109, you will need to purchase third party software to do this. You can find software suppliers here: Self Assessment commercial software suppliers 
  2. No, you cannot switch.    
  3. You can put the details of the losses on the return so that you can use them at a future date. HMRC must be notified within 4 years of any losses. You can use the SA108 for this.
Thank you.
Posted Wed, 12 Oct 2022 12:37:13 GMT by KW Leung
Hi HMRC Admin, According to your reply above, I need not declare my monthly pension from Hong Kong in the UK. Is it still necessary for me to provide in the ‘Any other information' box on my tax return the payer of the pension and the Double Taxation Treaty with Hong Kong, as stated in Clause 3.2 of the "Remittance basis 2022" Helpsheet HS264? Thank you.
Posted Fri, 14 Oct 2022 13:35:01 GMT by HMRC Admin 19
Hi,

Yes, you will still need to show it in additional information as it is exempt in the UK under Article 17.

Thank you.
Posted Sat, 15 Oct 2022 08:53:39 GMT by KW Leung
Hi HMRC Admin, Do I need to state the amount of pension (in Hong Kong dollars) I received in the 'Any other information' box as well? Thank you.
Posted Wed, 19 Oct 2022 10:36:37 GMT by HMRC Admin 17

Hi,
 
All figures declared in a SA return are in pounds Sterling only. 

All foreign currencies need to be converted to pounds Sterling, even if only as additional information.

Thank you.

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