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Posted Sat, 09 Sep 2023 10:08:57 GMT by A Wu
1. If I switch from remittance basis (21/22) to arising basis (22/23), I understand I'll need to pay worldwide tax for the income generated in the tax year 22/23, and for the nominated income declared in SA100 on remittance basis in 21/22, it is not taxable as long as I have not remitted the money. It is only taxable if I remit the money into the UK the the future. Am I correct? 2. For 22/23, if I have overseas income of GBP10k and UK income of GBP15k, I'll pay worldwide tax on arising basis for both overseas and UK income. If I remit the GBP10k overseas income, would I be double taxed (i.e. taxed on arising basis and taxed again as remitted income)? 3. For nominated income declared on remittance basis, do I need to put all the details such as breakdown of brokers/banks, breakdown of each item including which foreign currency of the income was originally received? Or I just need to put a GBP lump sum of each category: interest, dividends, property rental? Many thanks
Posted Mon, 18 Sep 2023 12:49:53 GMT by HMRC Admin 32
  1. Unremitted income arising in and declared in 2021 to 2022 tax return, would only be taxable in 2022 to 2023, if it was remitted to the UK in 2022 to 2023.  If you choose to apply the arising basis in 2022 to 2023, then you would declare all of your world wide income arising in 2022 to 2023 and any remitted income from a previous tax year, now remitted to the UK.
  2. No. You are taxed on the arising basis by default in the UK, unless you elect to use the remittance basis. You will never be taxed using both method in the same tax year.
  3. Boxes 44 and 45 of SA109 are used to declare unremitted income and capital gains. Box 40 is a freehand box and is used to provide a breakdown of the figures in boxes 44 & 45.
Thank you.

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