Non UK Tax Resident (checked by SRT) still need self-assessment ?

Hi, I arrived UK in Dec-2022 and checked with SRT online test confirmed that I was not UK tax resident for 2022-2023 tax year due to insufficient ties. In 2022-2023 tax year, I received UK bank interest of around GBP200, and no other UK income or captial gain, but I have overseas rental income, dividends, and interest in overseas banks during that period. Do I need to submit the self-assessment for 2022-2023 ? If need, do I need to apply Split-year? Thank you.

Hi,

Your income from UK bank interest is taxable in the UK. To declare that you were not tax resident for 2022 to 2023, requires the completions of a Self Assessment Tax Return for 2022 to 2023 (SA100) and SA109 (residence). Have you checked whether split year treatment applies?  Have a look at the guidance at:

RDR3: Statutory Residence Test (SRT) notes: 6. Split years

If you are not tax resident for the whole tax year and split year treatment does not apply, then the overseas rental income, dividends and bank interest would not be taxable in the UK. unless you bring this income into the UK, when it will become taxable in the tax year you bring it to the UK.  In the current tax year, you will be treated as resident for tax purposes for the whole tax year on your world wide income. This means that your overseas property income, dividends and interest, will need to be declared on a tax return each year going forward.

Tax on savings and investments: detailed information

Thank you.

Hi Admin32, I have quite similar situation to chan888 and having read your reply above I would wish to know (1) if non-tax-residency is to be claimed for 2022/23 (after checking automatic UK tests and sufficient ties tests), is a Self-Assessment still needed to be filed (SA100 Main and SA109 Residence) to get agreement with HMRC to this claim ? (2) if non-tax-residency is established (and agreed as per (1) above if required), there is no need to consider any further split-year treatments ? (3) or INSTEAD because other than those various foreign incomes, there are some UK bank savings interests which you stated is taxable in the UK, that a Self-Assessment is still needed to be filed ? (4) would it still be the case in (3) above if the total amount of savings interests (UK only or including both UK and overseas ?) is below the PSA and starting rate of interest ? (5) finally and to clarify, if any foreign incomes arisen within a confirmed or agreed non-tax-residency year (eg 2022/23) is brought or remitted to the UK in a subsequent tax-resident year (eg 2023/24 and thereafter), will such incomes be regarded as income afresh in the subsequent tax-resident year when they are brought to the UK ? Regards, ymying

Hi,

Yes, to declare non residency requires the completion of a Self Assessment tax return.  

If you are resident for the full tax year, then there is no need to consider split year treatment. If you are non resident for the whole tax year, you do not declare overseas income or gains on the tax return, only UK income and gains.  

UK savings interest and diviends are treated as 'disregared income' and should be declared on the tax return. Any UK tax paid on this income remains payable.  

Overseas income arising in tax years in which you are not resident in the UK, are not taxable in the UK and if some of it is remitted to the UK in a tax year, when you are resident, it will not be taxable.

Thank you.