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Posted Tue, 13 Feb 2024 17:32:48 GMT by
I came to live in the UK on 29 June 2023. As my Hong Kong employer wanted a better handover, they extended my contract for one month, i.e. I continued to work for my Hong Kong employer between 29/6/2023 - 31/7/2023 after arriving the UK. Since the arrangement was under Hong Kong employment contract, I was requested to report and update my tax position to the Tax Department of Hong Kong. Although the work was not carried out in Hong Kong, the Tax Department still requested me to pay tax for such one month salary due to the continuity of Hong Kong employment. I settled such tax payment last August after reported and received the tax return. Under this circumstance, do I need to report such one month salary in the 2023/24 self assessment? And how can I avoid double taxation? On the other hand, does the split year treatment apply on the first date when I arrived the UK? Thank you.
Posted Fri, 16 Feb 2024 16:51:54 GMT by HMRC Admin 25
Hi YY,
Please have a look at article 14 of the tax treaty between the UK and Hong Kong, as it covers employment.
It advises that employment for a Hong Kong employer when carried out in the UK is taxable in the UK, however, article 14(2)(a) states that if your were in Hong Kong for more than 183 days in any 12 month period, you are taxable in Hong Kong.
You will need to determine if the income is taxable in the UK.
If it is, you would declare it on a self assessment tax return and claim a credit for any tax paid in Hong Kong on this income.
This will allow you to avoid paying tax twice on the same income.
Thank you. 

Posted Fri, 16 Feb 2024 17:22:02 GMT by
Hello, thank you for your reply. Regarding the split year treatment for 2023/24 income, since I arrived the UK on 29 June 2023, and I continued working with my Hong Kong employer, I do not have a home in the UK until mid August. My interpretation is I fulfilled case 5 (starting full time work in the UK) of split year treatment from 29 June 2023. Am I correct ? Thanks!
Posted Tue, 20 Feb 2024 14:53:31 GMT by HMRC Admin 32

Per Article 17 of the UK/Hong Kong Double Taxation Treaty, pensions and other similar remuneration (including  lump sum payments) arising in the UK and paid to a resident of Hong Kong in consideration of past employment or self-employment will be taxable only in the UK.                                                

DT9203 - Double Taxation Relief Manual: Guidance by country: Hong Kong: Treaty summary

Thank you.

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