Remittances basis and tax filing

Hi all, Thank you for your help in advance. I am a new immigrant since 2021, uk tax resident but non uk domicile. Now I have a local job. If my overseas income is over 12570 ( tax Allowance) , should I use remittance basis to keep tax allowance ? If my overseas income is less than 12570( tax allowance ) should I NOT be using remittance basis ? I have the following questions on tax filing , could you let me know if my understanding is correct And this is put in the same field no matter I am using remittance basis or not? 1) a)For my overseas account, if foreign bank interest+stock dividend+bond interest SA100 b)For my overseas account, if foreign bank interest+stock dividend+bond interest >2000===>SA106 c)For my overseas account, capital gain from trading stocks, stock option, bonds===>SA108 2) in case I use remittance basis for first 7 years but not afterwards. For any gains that I made overseas for the first 7 years ,I don’t need to pay tax afterwards ? 3) things a bit complicated as I recently transferred some money out from uk bank to overseas bank account. In this case, for any interests incurred in this overseas account , can I use remittance basis as well? Thank you so much Best regards Clara

Hi,
We cannot advise you which basis to use as being non domiciled you have the option to choose.
If you choose the remittance basis you will report any foreign income that you remit to the UK on the SA106. further guidance is at:
Remittance basis 2023 (HS264)
Thank you.

Understood, thanks for your reply. Though I am not domicile in UK. But at the end of the day, i will remit in my overseas income to UK. So i will NOT use remittance basis. if that is the case, does this apply? a)For my overseas account, if foreign bank interest+stock dividend+bond interest SA100 b)For my overseas account, if foreign bank interest+stock dividend+bond interest >2000===>SA106 c)For my overseas account, capital gain from trading stocks, stock option, bonds===>SA108 thanks and regards, CL

Hi CL,
Yes to A and BA
Also if tax was deducted from this income, it should also be shown in SA106 (foreign) so that a tax credit can be claimed.
Overseas capital gains is shown on SA106 (capital gains) and if overseas tax is paid on the gains, you would also declare the gains including tax on SA106 (foreign) which would allow you to claim foreign tax credit relief. 
Thank you. 


 

Thank you for your explanation, really appreicate that.

Hi Admin, Thank you for your reply.I have some further questions. I am not Uk domicile but Uk tax resident. I am not using remittance basis. As I transfer money in and out from Uk and overseas, I mix funds local and overseas. To be prudent , when I submit tax report, is it ok I put foreign income as local income ? Which means 1) both overseas and Uk interests on sa100 2) both overseas and Uk dividend on sa101 3) both overseas and Uk capital gain on sa108 And I did pay dividend tax on some of the holdings, can I claim tax relief for that ? Thanks and regards cl

Hi,

No. You will need to declare any foreign interest and dividends on the foreign page as they need to be declared for the country from where they are received.

Tax on foreign income

Thank you.