UK/Hong Kong Double Taxation Agreement - Interest Income

Dear HM Revenue & Customs, I am writing to seek clarification on my tax residency status, the applicability of the UK/Hong Kong Double Taxation Agreement, and the necessary actions to be taken with HMRC if I am eligible to claim treaty benefits. To provide some background, I am currently a resident of Hong Kong and have been residing in Hong Kong for more than 300 days in each of the two consecutive years of assessment, as required by Article 4 (Resident) of the UK/Hong Kong Double Taxation Agreement. As per the agreement, I am considered a tax resident of Hong Kong. However, I am planning to relocate to the United Kingdom in September 2024. Consequently, I will be spending a considerable amount of time in the UK during the relevant tax year. Based on my understanding, even if I stay in the UK for over 183 days, Article 4 of the treaty would still classify me as a tax resident of Hong Kong. In light of the above, I would like to inquire about the necessary steps to be taken with HMRC if I am eligible to claim treaty benefits and be solely liable for Hong Kong tax on my interest income earned from a Hong Kong bank, despite exceeding the 183-day threshold for UK tax residency. Therefore, I kindly request your guidance and confirmation on the following points: 1. Am I correct in understanding that, according to the UK/Hong Kong Double Taxation Agreement and my residency qualifications under Article 4, I would be considered a tax resident of Hong Kong for the relevant tax year (2024/2025)? 2. Considering my tax residency status, if I am eligible to claim treaty benefits and be solely liable for Hong Kong tax on my interest income, what specific steps should I take with HMRC to ensure compliance and proper application of the treaty provisions? 3. Are there any forms, documents, or specific procedures that I need to complete or follow with HMRC to assert my eligibility for treaty benefits and correctly report my interest income? I greatly appreciate your assistance in clarifying these matters and providing guidance on the appropriate actions to be taken with HMRC. Please let me know if any additional information or documentation is required from my end. Thank you in advance for your attention to this matter. I look forward to your response and further instructions. Yours sincerely,

Hi,

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Thank you.