Foreign income

Hi, I’m a UK tax resident since 2017 and domiciled abroad. I’m a higher rate tax payer with respect to UK income and this year I have a foreign income (from rent of property abroad) of 3000£. If I remit 1001£ of the foreign income and leave 1999£ unremitted, can I use the remittance basis for foreign income and as my unremitted foreign income is below 2000 I will still keep my tax free personal allowance on UK income and not pay the remittance basis charge (RBC)? Thanks in advance.

Hi NincoNanco,
Please refer to guidance here:
Paying tax on the remittance basis (Self Assessment helpsheet HS264)
Thank you. 
 

Hi Admin, Wish you are doing well. Could you advise is below still valid for tax year 2022-23? But in case it is interest below £300 from overseas bank, will still need to do self assessment? I am an UK resident and had income from job in UK but it's less than the personal allowance during 2022-23. Quote A self assessment tax return is still required to declare any foreign income. The only exception is if it is dividends below £300. Unquote Thanks. 

Name removed admin. 

Hi HMRC I am new to the UK and have question about self assessment. I moved to the UK in 22 August 2022 and becoming tax resident in roughly 22 March because of 183 days living in the UK. I only received overseas income during 22/23 tax year. My question is, do I submit my overseas income after I becoming tax resident? Or I should submit the whole oversea income from the time I am in the UK(since August 2022) ?

Hi HMRC Admin, I am a freelancer and work from home in UK. My client is a Hong Kong company so I received my money in my Hong Kong bank account. I suppose to file my tax return as a sole trader. Do I need to fill the foreign income part in my tax return?

Hi HMRC Admin, I moved to the UK by BNO visa and lived here since September 2022. I was payroll worker with my job ended on 31 July 2022 outside the UK. I'm a homemaker and do not have any income except saving interests outside the UK with an amount below GBP300 after I entered the UK. I would like to confirm: 1. Do I need to file a self-assessment form in my situation for the tax year 2022/23? 2. What's the threshold amount to file the self-assessment form? 3. For the amount of income/dividends of GBP300 or GBP2000, could I clarify what are the differences of income / dividends that are actually referring under these different thresholds? 4. Is there any difference in the amount between low-tax payer and high-tax payer? 5. If the saving interests even lower than GBP300 was remitted to the UK, is that means that will still be required to file the self-assessment? And for my husband, he was on payroll and a tax resident since entered the UK. Does he still require to file a self-assessment form for saving interests? Either from UK bank or outside the UK? If so, what's the threshold amount to do so? Thank you.

Hello, If someone has an Armed Forces Relevant Civilian Visa as an employee of a NATO contractor, and is being paid by that foreign company and paying foreign tax on that income, are they required to pay UK taxes? Many thanks.

Hi RayL,

There is no minimum amount for foreign income to meet the criteria for completing Self Assessment Tax Return. Provided your overseas interest has no tax deducted from it and it is below £2000.00, you can declare it in box 3 of SA100, otherwise, it must be declare on SA106.

Thank you.

Hi Kin Wa Lau,

You became UK resident in the 2022/23 tax year. You will need to check whether split year treatment applies. If it does, you would only declare your worldwide income from the date you arrived in the UK.  

If split year treatment does not apply to your circumstances, then you would need to declare your worldwide income in a Self Assessment tax return, for the whole tax year and claim a foreign tax credit of up to 100% of the foreign tax paid.

Guidance on split year treatement and the tests can be found here:

RDR3 Statutory Residence Test

Thank you.

Hi Ngoi,

As a sole trader, freelancer, you would declare the self employment income in SA103.  

If you have paid tax on this income in an overseas country, you would also declare the freelance income and tax deducted in SA106. The section "Foreign tax paid on employment, self-employment and other income", advises "if you are claiming Foreign Tax Credit Relief on income included elsewhere in your tax return, fill in the columns below and say in the ‘Any other information’ box, on page TR 7, where on your tax return this income is included.

The country or territory codes are shown in the ‘Foreign notes’. Make sure that the foreign tax being claimed is the ‘minimum’ due under the laws of the foreign country after all deductions, exemptions, reliefs and allowances have been claimed. You can see guidance here: 

Foreign (2023)

Thank you.

Hi there, I hope you doing well. In the tax year 2022-2023, I came to UK at Dec 2022, I am a UK NON-RESIDENT. And I hasn't been a UK resident before. I have NO ANY UK INCOME including paid from work, rental income, interest, dividend etc. The only FORGIEN INCOME I had at that time was the bank account interest around 3000 pound. Do I have to send a self accessment tax return to declare the FORGIEN INCOME? I had a job in oversea before I came to UK. Before I came to UK, I had quit the job. Do I have to send a self accessment tax return to declare the FORGIEN INCOME before I came to UK at Dec 2022. Thank you

Good morning, I am tax resident in France and have a couple of questions. I rent out my UK property (formerly primary residence). I am completing a self-assessment tax return and rcompleting the Property pages as the rental income is more than £1,000. I have foreign dividend income (that I receive through managed funds in the UK) of more than £2,000 (net of tax). The Notes to Box 6 for Self Assessment say that if foreign dividend income is more than £2000, I should complete the Foreign pages. However, I read elsewhere that you should not complete the Foreign pages if you are not UK Resident. Could you please confirm how I should report Foreign Dividends of more than £2,000 via Self-Assessment if I am non-UK resident? Also, the French tax authorities have taxed my dividends at 12.5%. However, the tax year in France is a calendar year, so how should I report this? (Just use a straight line % for the months that are covered)? My other question is whether or not I need to fill in Form R43 (Claim to personal allowances and tax repayment by an individual not resident in the UK) if I complete the Property pages of Self Assessment (The note for box C3 in Form R43) states that I should fill in a Self Assessment rather than R43 if rental income is more than £2,500).

Hi ali ali,
You need to fill in a Self Assessment tax return if you’re a UK resident with foreign income (of any kind) or capital gains.
The only exception to this rule is if all the following apply:
- your only foreign income is dividends
- your total dividends - including UK dividends - are less than the £2,000 dividend allowance
- you have no other income to report.    
Tax on foreign income
Thank you, 

Hi HMRC admin, I have overseas interest income every month. May I ask which exchange rate to use, the yearly exchange rate or the monthly rate?"

Hi HMRC admin. I am registering for self-asessment to get my UTR. I started moving to UK in November, but didn't spend so much time there, but I got my residential visa in March and I became a TAX resident in UK only in mid-april 2023. I still receive my overseas salary. When did it start considered as foreign? From the day I became a tax resident or from November or March?

Hi M Mack,
Please refer to guidance at:
INTM860610
Thank you
 

Hi SkattImpots23,

As you are resident in France then the tax authorities in France will have taxing rights on your worldwide income and you will declare your dividend income to them.  
You do not need to report this income to the UK.  
As a non resident landlord you are required to complete an annual SA100 (Self Assessment core Tax Return), SA105 (Income from property page) and SA109 (Residence & Remittance page).  
You will be able to claim your personal allowance on SA109 an R43 is not required.

Thank you.
 

Hi Molar Polo,
To convert from a foreign currency to pounds sterling, please use the official rate of exchange at the time of the exchange.
You are free to use the yearly rate, the monthly rate or the spot rate.
If a conversion was undertaken to deposit the money into a UK bank account, then this figure can be used. 
The official exchange rates can be found here:
Exchange rates from HMRC in CSV and XML format
Thank you. 

Hi HMRC, I need to complete a self-assessment tax return for income from foreign property and foreign dividends. I am a UK resident for tax purposes. I have started filling my return in on the online portal and have entered my after tax dividend income in GBP (515) into the 'Dividends' section in this box: Foreign dividends (up to £2,000) (do not include this amount on your foreign pages). Enter the amount in sterling after foreign tax was taken off: (optional) Question 1. I understood that foreign dividends up to £2,000 were not taxable, is that correct? Question 2. If that IS correct (that foreign dividends up to £2,000 aren't taxable) - I'm not sure why but in my tax calculation it has included my dividend income with my other taxable income (rather than listing it separately as higher band at nil rate - 515 x 0% like last year). Please could you help me with this? Thank you.

Hello Admin, I am a UK resident and am employed permanently. Last fiscal year, I had a royalty payment from a US publishing house, which exceeded £300. I understand that I have to submit the tax return for this income, and this is a foreign income. Can you please clarify which form I have to submit, and what fields should I fill? I checked the self-assessment form; however, none of the form fields looks suitable. Thank you.