report overseas income

Mr. A is a BNO visa holder and a tax resident for the tax year 2022-2023.  He is retired in the UK without any employment income.  He only got interest earned from his deposit in the UK bank and  in Hong Kong.  Does he need to report income from Hong Kong if he does not intend to bring those interest earned in Hong Kong to the UK?

Hi,

If claiming the remittance basis he does not need to report the income but will still need to complete a tax return to show that he is doing this. You can see guidance here:

Paying tax on the remittance basis (Self Assessment helpsheet HS264)

Thank you.

HMRC Admin19 's above reply is very confusing. Remittance basis is an alternative tax treatment for the UK residents who remit their overseas income and gains to the UK. But Mr. A does not remit the interest earned in Hong Kong to the UK. Why does he still need to claim tax on the remittance basis? From the guidance provided by HRMC about remittance basis 2023 (HS264), it mentioned Quoted”. But you’re only liable to UK tax on any remittances (amounts) of foreign income and gains that you remit to the UK .” unquoted. Please further clarify that Mr. A does not need to report about his interest gain in Hong Kong when he does not remit his foreign income and gains to the UK.

Hi
By default, all UK residents are taxable on their world-wide income on the 'arising basis'.  
Where a UK resident is not domiciled in the UK, the can choose the remittance basis as an alternative to declaring the world-wide income on their tax return.  
The remittance basis is for declaring unremitted income, which would be the interest earned in Hong Kong but not remitted to the UK.

Please advise which forms Mr. A should fill in to complete self assessment tax returns when he does not remit any of his foreign income to the UK SA100 SA106 SA109 It is confusing for above 3 forms. What are the differences between them?

Hi abc123

To confirm you are claiming the remittance basis, SA100 and SA109 are required. as no foreign income is being remitted there is no need for the SA106.

Thank you