Claiming Double Taxation Agreement - Hong Kong Special Administrative Region (HKSAR) and UK

Hi HMRC Admin I am reading the INTM154020 - Double taxation agreements: residence: dual residents. I came to the UK with the BNO visa. My kids came together with my wife but they are dependent on my wife's BNO visa. I do not have firm plans for the future yet but I am still staying in the UK as of Dec 2023 and have no plan to leave in the near future. I am considering my case as both UK tax resident for the tax year 22/23 (stayed in UK for more than 183 days in 22/23) and HKSAR tax resident (condition 1.a.ii under the UK/HK Double Taxation Agreement and Protocol as I am a HK national and also ordinarily resides in HKSAR and stayed more than 300 days in 2 consecutive years of assessment one of which is the relevant year of assessment.) I have gone through the tie-breaker rules listed in the UK/HK DTA and Protocol, and I consider myself as HKSAR tax resident for the purpose of the DTA ('treaty residence') under the centre of vital interests' I had both HKSAR and UK income in 22/23 HK Income - Employment income before I came to the UK - Rental, Dividend, Interest, Director income throughout 22/23 UK Income - Employment income after I came to the UK - Interest income (less than £10) My question is 1. As I am considering HKSAR tax resident for the purpose of the DTA ('treaty resident'), does it mean that it will apply on all my UK and overseas income for 22/23. If yes, how do I report and pay my UK employment income as I have already paid PAYE? And do I need to report my overseas income (I am claiming split year treatment for 22/23 and I have not remitted any overseas income in the UK part of the split year) 2. I know that for 23/24, I won't meet the criteria to consider HKSAR as my 'treaty residence' as I no longer live in HKSAR more than 300 days for 2 consecutive years of assessment. Does that mean that for 23/24, I simply use the SRT to determine my UK residents and report tax as per the result accordingly? Or I have to formally to declare giving up the HKSAR 'treaty residence'? 3. What form do I need to claim the HKSAR 'treaty resident' status for 22/23? I saw a 'Double Taxation Treaty Relief' form in other thread, does it applicable for my case? If yes, I am filling out the online tax return using a third party software, and I do not see this form inside the platform, do I just attach this form together with my required submission? 4. I also see that under the 'Double Taxation Treaty Relief' Form, there is a space that I need the taxation authorities in the country of residence to sign and stamp the form. I am not sure if this is the service that will be offered by the HKSAR Inland Revenue Department (IRD) But I had already submitted a tax return to HK IRD and I have ongoing conversation with HKSAR IRD regarding this 22/23 tax return, does it provide sufficient evidence? (As far as I understand, HK follows a territorial basis of taxation and generally doesn't tax individual on foreign income and no tax on interest and dividends, hence these income, together with the UK employment income, are not listed on the tax return) 5. Is there any time limit for me to claim back the HKSAR 'treaty resident' status? e.g. four years from 22/23? I would be grateful if you could help me with the case. Much appreciated!!! Best wishes, TC_UK

Hi,

As you arrived in the UK in the 2022 to 2023 tax year, you were able to determine your residence status. This must be declared in a Self Assessment tax return, that included all of your UK income and capital gains.  

For tax year 2023 to 2024, you will automatically be resident in the UK for the whole tax year, as a non domiciled UK resident. You will automatically be taxed on your worldwide income in the UK in each tax year. You would also have the option to claim the remittance basis, you can see guidance here:

Guidance note for residence, domicile and the remittance basis: RDR1 

In either case, a Self Assessment tax return is required for each tax year you have foreign income or capital gains or claim the remittance basis. The deadline for paper tax returns for 2022 to 2023 was 31 October 2023. Any paper tax returns received after that date, are late and subject to penalties being imposed. Online tax returns can still be submitted on time up to 31 January 2024.  

Please note the HMRC online tax return does not have a residence section, so cannot be used to sumbit a residence based tax return. You would need to be able to obtain a government gateway user ID and password. You can register below and set up a personal tax account, as well as register for Self Assessment:

HMRC online services: sign in or set up an account

For an online tax return that supports residence, you will need to buy a commercial software tax return and submit it with the government gateway user ID and password.

Self Assessment commercial software suppliers

You can download and request paper tax returns here:

Self Assessment tax return forms

Thank you.