BNO

Good Afternoon HMRC Admin, May I know whether the Self Assessment check site is only for UK Tax resident or not? If I am not UK Tax resident, the annual income I put in when doing the online test only limit to UK income? Or even if I am Non-UK Tax Resident, when doing the online test to see if I need a self-assessment, I need to include my overseas salary? Another question is for an elderly dependent of mine. The elderly bought Hong Kong stock over the years at different time and price. However, she has no record nor evidence/ receipt on the time and price of these stocks as there is no need to do so for tax purpose in Hong Kong. How can I calculate the capital gain or loss for her in that case as she plans to sell these stocks and bring the money to UK? Is a best estimate acceptable or not? Thank you in advance.

Hi,

If you are resident in the UK and receive an overseas income, no matter how little it may be, you meet the criteria for completing a Self Assesment Tax Return. If your relative disposes of the shares in Hong Kong in a tax year that they are not resident in the UK, then there will be not Capital Gains Tax liability.

Thank you.

Hi, I am afraid I have not made myself clear, my elderly dependent is UK Tax resident for 2023-24 year and will sell her stock in Hong Kong in Oct 2023. There is capital gain tax liability therefore. However, she has no records on the buying of these stocks that she bought at different prices and quantity over the past decades. There is no capital gain tax related to buying and selling of stock in Hong Kong and she just keeps these stocks as alternative way of saving, therefore there is no need to keep any record. The issue is how to deal with the capital gain tax liability now that she is UK Tax resident, is an estimate good enough? Thank you

If you meet all conditions under the 9.27 Further exceptions to making a Self Assessment tax return claim for the remittance basis stated in Guidance note for residence, domicile and the remittance basis: RDR1 (https://www.gov.uk/government/publications/residence-domicile-and-remittance-basis-rules-uk-tax-liability/guidance-note-for-residence-domicile-and-the-remittance-basis-rdr1), then no self-assessment form is required to submit, so, it is not 100% mandatory to submit the form, there is still exception.

Hi , Thank you for the link to the exception in which circumstances I don't need to fill up a self-assessment. However, I notice in the same site, 9.5- To use the remittance basis for your foreign income and foreign gains you must be UK resident. For the tax year I am asking question for, year 2022-23, I am NOT a UK Tax resident. Therefore, my understanding is that remittance basis does not apply to me. I don't need to pay any UK tax on income that is not of UK source. Despite I have high income from my Hong Kong salary( job done in Hong Kong for services in Hong Kong) before I left for UK in end of Jan 2023, my understanding is that I don't need to file a self-assessment as I was not a UK Tax resident. I wrongly submit a request for self-assessment as the site to test for any need to file a self-assessment does not say it is to be used after I am tested to be a UK Tax resident, and it does not ask to enter income of UK source only (exclude income that are exempted- e.g. HK salary only to be taxed in Hong Kong) The other question on capital gain tax liability is for another tax year 2023-24 when I and my dependent are UK tax resident. When the receipt and evidence of buying the stock is lost, is it acceptable only to estimate the capital gain/loss? Thank you for your patience.

Hi Sam Lee

A fair and reasonable estimate would need to be used in this case.

Thank you

Hi
For 22/23, please refer to Self Assessment tax returns.
With regards to potential capital gains for 23/24, you will need to contact the company you bought the sahres from to ascertain the original cost price.

Hi HMRC Administrator, I received monthly pension payment arising from the past employment in Hong Kong. I live in UK. I have to pay tax in Hong Kong for this pension income. Under the double taxation agreement between UK and HK, I have to pay tax for this pension income in Hong Kong. (1) Do I need to report this pension income in UK? (2) If I receive overseas interest from bank saving which is exempted from tax in that place, do I need to report this interest income in UK? If I need to report, can I use the UK personal allowance to calculate my taxable income for UK tax?

Hi Je77 Jones,
Where the double taxation agreement confirms the pension is only taxable in Hong Kong, then the pension would only be declared as additional information in box 19 of SA100.
In this way, you are complying with the requirements of full disclosure, but not being taxed on the pension.
Yes, overseas interest shoudl be included in your Self Assessment tax return, in pounds sterling.
Thank you. 

 

Dear HMRC Admin 25, For clarification, if my pension income in Hong Kong is equivalent to GBP 30K and have paid tax in Hong Kong, my overseas interest income is GBP 25K, will the taxable income in UK be GBP 25K - 12.57K (less personal allowance) = GBP 12.43 at basic rate of 20%? Thanks.

Hi HMRC admin, I moved to the UK on the 6th October 2022. I would have lived in the UK for 182 days (6 Oct 22 till 5 Apr 23). Do I need to pay any tax from bank interests, dividends from HK banks and foreign incomes? I did the self assessment online before 5th October but I didn't receive any UTR number by post, Please kindly advise.

Hi Je77 Jones,
Article 18 of the UK / Hong Kong double taxation agreement, advises that pensions arising in Hong Kong and paid to a resident in the UK, will only be taxable in Hong Kong.
UK/HONG KONG DOUBLE TAXATION AGREEMENT AND PROTOCOL
In the interest of full disclosure, you could declare this pension as additional information in box 19 of SA100, so that it is not included in any calculations.
Thank you. 

 

Hi, I have relocated from Hong Kong to the UK since 2021, never employed in the UK, therefore have never filled self-assessment for tax purpose. I have recently received a Certificate of tax position letter from the HMRC. To my best knowledge, I have the following incoming funds into my bank account, 1) Hong Kong Mandatory Pension Funds (MPF) - which I understand from the previous thread in this forum, there is no declaration required as this is paid in consideration of past employment in Hong Kong; 2) bank interest and dividend from share holding received in Hong Kong - which is below my Personal Allowance of each tax year; 3) some cash gifted from family - not subject to UK tax. My question is which of the 4 options I need to choose from the letter? i) Bring my tax affairs up to date ; ii) I have declared all my overseas income ; iii) I have not declared all my overseas income as they are covered by personal allowance ; iv) I have not declared all my overseas income as they are not liable to UK Tax?

Hi,
 

Based on the information you have given, it would be option 3   . Thank you .

Thank you, a follow up question please, I am unemployed, as mentioned previously my only source of income would be coming from bank interest and share dividends, if both are within my personal allowance then do I need to submit self-assessment each tax year?

I've a foreign rental income which under the joint name (50/50) with my civil partner. After accounted for 50% apportionment, do I need to file the Personal Assessment if my rental income can offset by the personal allowance completely? If yes, how to claim the tax relief on the tax which we paid to HK Inland Revenue Department. Thank you.

Hi hkuk2023,
Where your investment interest or dividends exceeds £10000, a tax return is required.
The best way to ensure that a tax return is not required is to use the tax return checker.
It will confirm whether you need to complete a tax return or not.
Check if you need to send a Self Assessment tax return
Thank you. 

Hi Lilian Tong

As you are in receipt of overseas income (of any kind) you must declare your share of the income and expenses, in a self assessment tax return (SA100) on supplementary page SA105 (Property) and SA106 (foreign).  
On page F4 of SA106, you would complete the boxes 14 to 32 as appropriate.  You do not need to work out the foreign tax credit yourself, we will do this for you, provide you submit your tax return by the filing date.  
Only fill in box 2 if you want to calculate the FTCR yourself.  You can work out the foreign tax credit relief available for the Hong Kong tax paid, using
Relief for foreign tax paid (Self Assessment helpsheet HS263)
or if you submit your tax return.  
Foreign notes
Foreign.
For submitting your tax return online, you would tick yes to foreign income  and no to claim  Foreign Tax Credit Relief on Capital Gains

Thank you

Hello, my mother is 74 years old and has been receiving the Hong Kong Government’s Old Age Allowance and my son is receiving the Hong Kong Government’s Disability Allowance. Do these incomes need to be reported and paid in the UK? Thank you

Dear HMRC Admin, In addition to some UK bank interests, I have foreign interest incomes, dividend incomes, captain gains, rental incomes and director's fees in HK and US. As I will use remittance basis for reporting this year, I only need to pay tax on my UK bank interest, if any after allowance. What I want to know is how I should report on SA106 if I remit the above (a) foreign captain gains, (b) foreign rental incomes and (c) foreign director's fees into UK in future because I note that there are only boxes for (1) Remitted foreign saving income (2) Remitted foreign dividend income on F2 of SA106. Thanks for your advice.