Foreign income from former employer

Hello. I resigned from my job in Hong Kong on January 3, 2024, and completed tax clearance in Hong Kong. Then I arrived in the UK in mid-January and became a UK tax resident for the 2024/25 tax year in April 2024. In March, my former Hong Kong employer informed me of an annual incentive for 2023 and transferred it to my Hong Kong bank account in May 2024. We informed Hong Kong’s Inland Revenue Department, which conducted an additional assessment and issued me a tax refund for the 2023/24 tax year. As I received my annual incentive in May, do I need to report this income to HMRC and pay UK tax on it?

Hi ,
 

No.  It relates to your employment in Hong Kong and is only taxable in that country. Thank you .

Thank you for your reply. I am still a little confused. Isn't all the foreign income taxable in the UK if I am a tax resident in the UK? Is it because of the double taxation agreement between the UK and Hong Kong that my employment income in Hong Kong is only taxable in there?

Hi,
Yes, the double taxation treaty has precedence over residence.
Thank you.

Hi,
Thank you for the information.
I have one last question,
do I need to report anything to HMRC to state that this income is from Hong Kong, so I don't need to pay tax on it?

Hi kingfung
If you file a tax return, you can make reference to it in the additional comments section.
If no return, you do not need to do anything.
Thank you.