Foreign Income

Hi HMRC, I have Singaporean citizenship and I have just started work in the UK in January 2023 (under a tier 2 visa). I have also been a student in the UK for about 8 years starting 2012. I have received a letter from HMRC stating that I might have taxable foreign income and that I might have to declare it via a DDS form. I was very surprised by this letter as I thought that my tax returns for the year April 2022 to April 2023 were only due in October this year. Nevertheless I tried to complete the DDS form to declare the interest I earn (less than £50 each year) on two bank accounts I have in Singapore. However, there is no option on the form to declare for the 2022 to 2023 tax year. I am at a loss as to what HMRC is seeking from me. As I have begun working in the UK, does that mean that any interest accumulated when I was a student here in the past is also taxable? I have never been queried about taxes before and I understand that the UK and Singapore have a double taxation treaty in place. I do not know what kind of response I should return to HMRC or where I can obtain more information.

Hi,

DDS forms are for voluntary disclosure to HMRC of your worldwide income. While you were a student in the UK, your foreign income was not taxable in the UK. You can see guidance here:

Tax on foreign income

Now that you are working in the UK, in the 2022 to 2023 tax years onwards, this income arising in 2022 to 2023 onwards, is taxable in the UK from 2022 to 2023 onwards.

Thank you.

Hi, i have invested in a friend's property abroad in India and he is going to send me £420,000 via bank transfer from his Indian bank account.. he will have to pay transaction fees etc but do I need to notify HMRC if this is from a sale of a property but i had no affiliation with to begin with?? Will i have to pay any tax for receiving my money back???? I am simply getting paid back with interest for what I have paid into the property investment..

Hi,

If your name is on the deeds for the property due to your investment, you will need to report this as a capital gain. If not, it will just be the interest that you declare.

Thank you.