Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 24 May 2023 06:10:05 GMT by Magikarp
Dear HMRC admin, I am residing in Hong Kong and working for a Hong Kong based airline. My personal income is in HK dollars and received in Hong Kong. Last year my family moved to the UK and I come visit them sometimes on personal terms and also via work trips. I have not exceeded the 183 days for the tax year 22/23, however I have exceeded the 120 days in Statutory Residence Test (SRT) with 2 family ties. Under this test I am a deemed UK tax resident for the tax year. But I am also aware there is a Double Taxation Relief treaty between HK and the UK. In the treaty it mentions 183 days as the only criteria (without referencing to the SRT, etc.). And by the terms of the treaty, my foreign income is not subject to UK tax. These 2 provisions sound a bit conflicting. Can I therefore ask, which of the above overrides the other? And more specifically, is my Hong Kong income subject to taxation by the UK, and do I need to file an assessment for UK tax for 2022/23? Thanks for your help in advance.
Posted Fri, 26 May 2023 09:57:26 GMT by HMRC Admin 25
Hi Magikarp,
Article 14 of the UK/Hong Kong DTA advises that if you are resident in Hong Kong, you will only be taxable in Hong Kong, unless that employment is exercised in the UK,
Then the income arising from employment while in the UK may be taxable in the UK.  
Article 14(3) then advises that employment exercised aboard an aircraft or ship operated in international traffic, by an enterprise of Hong Kong, may be taxed in Hong Kong.
Thank you. 
Posted Mon, 07 Aug 2023 08:36:34 GMT by Psy Duck
Hi HMRC admin I have a similar situation as Magikarp and I would like to double confirm a few things. I lived in the UK for over 120 days, but less than 183 days for the tax year. After that, I moved back to Hong Kong for the rest of the days. Since I was a UK tax resident before, and I satisfied the Statutory Residence Test (SRT) with 1 tie, I would be a UK tax resident for the tax year. According to your explanation above, my employment income in Hong Kong will only be taxable in Hong Kong unless it is exercised in the UK. In this situation, do I still need to file a self assessment tax return, declare my employment income in Hong Kong and then claim the tax relief under the tax treaty? Or I could just leave it and don't need to do anything? Thank you and look forward to your reply.
Posted Fri, 11 Aug 2023 05:42:04 GMT by HMRC Admin 25
Hi Psy Duck,
If you qualify for split year then you only report any foreign income for the UK part of the year:
RDRM12000 - Residence: The SRT: Split year treatment: Contents
If you do not qualify then you will need to report all your foreign income to the UK:
Tax on foreign income
The guidance at RDRM12150 at will help you work out if split year treatment applies. if not, you need to declare all your income and then claim foreign tax credit relief.



You must be signed in to post in this forum.