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Posted Wed, 19 Jun 2024 11:47:06 GMT by nelk24
I have a couple of questions on foreign employment income and FX rate to use in converting into GBP. I came to UK with the BNO Visa from Hong Kong, but I still work for my HK employer so far. I understand I have to do the self assessment for the foreign income including employment, saving and bond interest, dividends as well as capital gain on investments. However, there are a couple of questions on the details for the self assessment I would like to understand 1) For employment income from HK, should I declare salary before MPF (mandatory provident fund contribution required by HK government) or after MPF as the gross income before NIC and Tax? And if declare salary before MPF, would there be a tax relief/credit for the MPF contribution? 2) a) For the non-GBP saving interests, coupon interests from foreign corporate bonds and dividends from non-UK company stocks investments, what foreign exchange rates should I be using? Is there a reference rate I could utilise? Or any reliable and respectable source should suffice e.g. Bloomberg, Banks etc. b) When converting foreign incomes(interests, coupon, dividends etc) into GBP, should I use the FX rate on that specific day or month end FX rate or Year End FX rate (i.e. 5th April) 3)For dividends, I understand that I have to declare the gross dividend before withholding tax, but is there any withholding tax relief/credit?
Posted Tue, 25 Jun 2024 09:23:28 GMT by HMRC Admin 21
Hi nelk24,
1. As the MPF is not taxable in the UK it will be the income after this and no credit will be given for the contribution  
2. Please refer to HMRC currency exchange average rates
3. If any UK tax is due on the dividends, you can claim foreign tax credit relief to offset against your UK bill - Relief for foreign tax paid (Self Assessment helpsheet HS263)
Thank you.
Posted Wed, 26 Jun 2024 12:04:14 GMT by nelk24
Hello, Thanks for the answer on question 1 and 3. For the question 2, since you provided monthly exchange rate and average exchange rate for last twelve months, does it mean I only convert the saving interests, coupon interests from foreign bonds, dividend from non-UK company stocks into GBP using the relevant monthly exchange rate for the transactions? i.e. I received the coupon interest on 17 Feb 2024 and I would use the Feb 2024 monthly exchange rate to convert it into GBP, right?

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