BNO

Hi HMRC Admin, Currently, I am working for the HK company. I will work for the HK company after I immigrate to UK, understand that the HK income will count in taxable income under UK tax rules. Would my housing allowance also count in taxable income? or only tax on salary income? Thank you ChunTim

Hi,

You will only be taxed on income.

Housing allowance is not something that is taxable in the UK so would not be taxable if it is from Hong Kong. 

Thank you.

Hi HMRC Admin, I am expecting my pension to be paid to me shortly after I relocate to the UK later this year. The pension arises out of my employment in Hong Kong, but in the final few days of the employment I will be in the UK physically. So my questions are: 1) is salary for that few days taxable in the UK? 2) is the pension taxable in the UK? Thank you.

Hi,

If you are UK resident you will notify HMRC of your worldwide income, howerver, if your circumstances meet split year treatment you will pay tax on the income arising in the UK part of the year.

You will notify us of this by completing self assessment return and filling in the Residence, remittance section (SA109).

Thank you.


 

I arrived UK on 1 Oct 2020 and become a UK resident first time in 2020/21. If Split Year Treatment is not applicable, I know I would become a UK resident from 6 April 2020. I am not a UK resident in 2019/20, I started to have a UK home on 27 October 2020 and I am a non UK resident between 6 April 2020 and 27 October 2020, Please confirm that the date I become a UK resident is 27 October 2020.

Hi, 

You will count your residency days from the date you arrived in the UK. 

Please follow this link for more information:

Statutory Residence Test

Thank you. 

Thank you for your reply. I understand I will count my residency days from the date I arrived in the UK. My question is when Split Year Treatment is applicable, would the date that I started to have UK home (27 October. 2020) be the date that split into non-UK resident part and UK resident part for 2020/21. So that my overseas income and gains for the period from 6 April 2020 to 26 October 2020 are not subject to UK and my overseas income and gains for the period from 27 October 2020 to 5 April 2021 are subject to UK tax

Hi, 

Please follow this link to determine your residency:

RDR3 Statutory Residence Test

Once you have established the date that you became UK resident, you then need to declare your worldwide income to HMRC from that date.

Thank you. 

Hi I am a retired civil servant in Hong Kong and I receive a monthly pension payment from Hong Kong government. Is it correct that the monthly pension income that I receive will only be taxable in Hong Kong and is covered by the UK-HK Tax Agreement? Thanks.

Hi,

Please see the following guidance which states that pension from Hong Kong remains taxable in Hong Kong:

UK/HONG KONG DOUBLE TAXATION AGREEMENT AND PROTOCOL

Thank you.

Hi, I got a BNO Visa for a 5 years stay in the UK, arriving on 3 Sept. According to the tax rules, I'll become a tax resident next April, once I've been staying in the UK for 183 days. Here, 30000 pounds have been trasferred from a HK bank into a UK bank recently for cost of living in the UK. Is this taxable that I have to report it to HMRC by submitting a tax return next April? If so, how much is it taxed? As it is my cost of living, any relief can i claim to reduce this taxation. Does remittance basis help in this regard? Please advise. Thank you!

Hi,
 

The money transferred to your bank account is not taxable, any interest on the income is taxable, see link below for more information : Tax on savings interest  . Thank you.

Hi, I arrived in UK from Hong Kong at 15 Aug 2020, and got the BNO visa this year. I am continuously working for a Hong Kong firm as a full time job and receiving monthly salary. I have to pay tax to HK Government. At the same time, I live in UK over 183 days defined as tax resident, so I am doing my tax return now. Some questions I want to verify before I complete the tax forms. 1) I got my UTR from HMRC, and I applied for the NINO, but not receiving the number, should I send out the SA100 form to HMRC without filling the NINO? or I have to wait for the number? 2)Apart from the SA100, I have to fill the total salary incomes received since 15 Aug 2020 to 5 April 2021 in the employment page(SA102), and also applying the split year treatment in remittance basis page(SA109), is it correct? 3)As I know, the income tax paid to HK government is eligible to claim for the tax relief in UK, which can be filled in Foreign page(SA106), is it correct? 4)If I have capital gain in Nov 2020, but the profit amount is less than 100 pounds, is it necessary to report? 5)My wife has no income in last tax year(2020-2021), so she has not to fill the tax return, How can I share her marriage allowance? Thank you for your help.

Hi, I will relocate from HK to my company UK office and will use BNO visa for working. The pension provided by HK will hold until I reach my retirement age or leave the firm then it will release to me. After I become Tax resident in UK, the pension during my work in HK when released and remitted to UK under UK/HONG KONG DOUBLE TAXATION AGREEMENT AND PROTOCOL, this is not taxable, am I right ? Thanks.

Hi C_ leung

You can complete the return using the UTR number if you are still not in receipt of your NINO.

You are correct in completing the SA100, SA102 and SA109. You would also need to complete the SA106 to claim any Foreign Tax Credit Relief for any tax paid in Hong Kong so that you are not charged twice on the same income.

If the Capital Gain is not taxable then you would not need to report this on the return.

For your wife to share the marriage allowance, please see guidance here:

Marriage Allowance

Thank you. 

Hi HMRC Admin, Thanks for your reply. One more question from my background, when I applied the split year treatment, is it equivalent to subject into the remittance basis? If I don't want to use the remittance basis, split year treatment should not be applied in the case? Thanks for your advice.

Hi,
 

Using the remittance basis is a personal choice. You do not need to use the remittance basis if you prefer. You can still use split year treatment if the conditions apply.

Thank you.

Hi
 

A Kwok,   Pensions from Hong Kong are liable to tax only in Hong Kong. Please see tax treaty : uk/hong kong double taxation agreement - GOV.UK   . Thank you.

Hello, I arrived in UK at June and I am still working for the employer in Hong Kong under the employment contract in Hong Kong and they pay the monthly salary through my UK's bank account. As they said that they have no subsidiary in UK, I need to handle the salary tax and NI by myself. On the other hand, as I still need to contribute the MPF in HK (the pension scheme inHK), could I ask my employer to to establish the working pension for me in UK? Thank you!

Hi,
 

You would need to speak to your HK employer to establish the options regarding pension. In terms of paying your own tax and NI, please see guidance here : PAYE20100 - Employer records: set up employer record: DPNI scheme - direct payment (tax and NIC)     .

Thank you.