remittance basis

I am a BNO visa holder and have been UK resident for nearly 4 years. I do not have a job and just have saving interests. I am quite confused on how to calculate the tax even though I have gone through the HRMC website. Assuming I have saving interests which are generated locally and from Isle of Man as well as capital gain from sale of US stocks. I would like to know if my understand is correct if i claim remittance basis for tax purpose. 1. Is saving interest from banks in Isle of Man and proceeds from sale of US stock and the dividends regarded as foreign income? 2. If i claim remittance basis, I understand I will loss my Personal Allowance and well as capital gain allowance. Am I still eligible for saving allowance of 5000+1000?

Hi Win,
Here is our response to your questions:
1. yes   2. yes
Thank you.

Thanks. Though I have searched info on various websites, but couldnt find answers to the below. Would you please help clarify? 1. Are saving interests in GBP (local currency) generated from Lloyds International with head office in Isle of Man regarded as foreign income if i claim remittance basis? 2. I understand that capital gains from sale of US stock is regarded as foreign income. However, is it subject to capital gain tax even though I haven't remitted the gains into UK? 3.I have foreign currencies in my IBLLC account. Are the gains in FX regarded as capital gains even though I am not trading, just have the foreign currencies as savings, to buy stocks and to finance my living? 4. I understand that I being a BNO visa holder can claim remittance basis for 7 years. I entered UK in Mar 2021 and only claim remittance basis this year 2023 - 2024, does it mean that I can claim remittance basis till the tax year 2028-2029 (calculated from the date I entered UK) or 2030-2031 (from the date I claim remittance basis)? Many thanks and looking forward to your reply.

Hi Win CHAN,
1. If paid in sterling, it is UK income.
2-4. Please refer to:
Paying tax on the remittance basis (Self Assessment helpsheet HS264
HMRC canot comment on future events as legislation and/or plans may change.
Thank you. 

Sorry i feel confused about your answers. I actually browsed through the HRMC and other websites before asking the question. But most of it said income generated offshore is regarded as Foreign Income no matter they are in GBP or other currencies. The HRMC's website also states that "Foreign income is anything from outside England, Scotland, Wales and Northern Ireland. The Channel Islands and the Isle of Man are classed as foreign....." Would you please clarify again?

Hi,

IF living in the UK, income from Isle of Man and Channel Islands is classed as foreign income and you would therefore only declare this if you remit it to the UK.

Thank you.

Thanks, just want to make sure if i dont get you wrong. That is, if I claim remittance basis, I DO NOT need to declare the foreign income if I am NOT going to remit the FY into UK. Or do I still to declare it even though I am not remitting them to UK?

I am going to apply Marriage Allowance and not sure if my understanding is correct even though I browsed through so much related information online. Would you please clarify: I and my wife are not working and we both only have saving interest. I understand I can claim MA if my wife is not a tax payer and i am a basic tax payer. My wife income from saving interest is for example GBP16000 (which is above the personal allowance GBP12570 but under GBP18570 under PA + PSA GBP1000+ Starting rate for saving GBP5000). In such case, can she transfer her GBP1260 PA to me as MA? If yes, can i eligible for MA since my total income from saving is GBP22315?

Hi ,
 

Your wife can transfer the 10% of allowances to you, as the remaining income will be covered by the savings allowances you have mentioned, so in doing so she will not incurr additional tax. You wold be entitled to receive this transfer of allowances .  Thank you .

Do you mean even though both of us ONLY have SAVING INTEREST and NO earned income from job, we can still apply for MA as the "income" required to fill in in calculating the eligibility of MA in the HRMC site refers only to earned income from job which should not be over 12570 to be eligible? Since if "income" referred to include all income, in my wife's case, she will not be eligible to transfer the MA to me as it is 16000 which is over 12570 . Kindly please clarify, thanks.

Hi Win CHAN,
If not remitting, you do not declare when using the remittance basis.
Thank you.

hi Thank for letting me know that my wife can transfer her MA to me. However, when we use the HRMC MA calculator to enter income as 16000 and were told "will not benefit as a couple because income over 12570". So, should we enter 16000 (saving interest) as income or 0 (income from Job) as she only has saving interest? Is the "income" in the HRMC MA calculator refers to income earned from job only or include those from savings and others as well? Many thanks

Hi KK Wong,
Please refer to guidance at:- Married Couple's Allowance
Thank you.

Hi, I actually studied the guidance many times but I still dont quite understand how to calculate and the meaning of income. Would you please clarify whether the income as stated in the HRMC refers to the amount equivalent to 12570 or including savings up to 18570?

Hi,
Yes, if savings income only then you will enter this information.  
Thank you.

Hi KK WONG,
As this forum is for guidance only, you may want to contact our Income Tax team for advice.
Income Tax: general enquiries
Thank you.