Split year treatment

Thanks. I have already reviewed the rules and understand I am qualified for the split year treatment. My question is, when I fill in the self-assessment, whether I need to report income for the whole tax year or just those income from the time I become UK tax resident. For example, I become a UK tax resident on 1 Feb 2021. My overseas income in the whole 2020-21 tax year is 1000 pounds, in which 50 pounds is incurred from 1 Feb 2021 till the end of 2020-21 tax year. When I fill in the tax assessment regarding the overseas income I have, shall I report 1000 pounds or 50 pounds?

Hi C Law,

If you qualify for split year then you are only reporting the income for the UK part of the year. 

Thank you.

Hi, I am in the similar situation with C Law. I have checked the Split-year treatment guidance note and confirmed that I am quality for split year treatment. While I fill in the "Residence, remittance basis etc" form, I am confused whether I need to fill in Box 18-22 and Box 23-27. I read through the HS 302 and HS 304 forms, it seems that it is only applicable to non-UK resident. 1. So like the case as C Law mentioned, do I need to enter the country codes in Box 18 and 19 ? Do I need to fill in Box 20-22 if there are no overseas income arise after I leave in the UK? 2. Similarly, for Box 23-27, do I have to fill in if I enter and leave in the UK since 1 Feb 2021? 3. Noted that we cannot submit the "Residence, remittance basis etc" form online, is that mean we have to submit this form along with the self-assessment before 31 Oct 2021? Thank you for your time in advance.

Hi Amy,

Boxes 23 onwards only need to be completed if you are UK resident and claiming the remittance basis.

If this is not the case then you do not need to enter any information in these sections.

Guidances notes on this can be found here

Residence, remittance basis etc (Self Assessment SA109)

You would still complete boxes 18/19, boxes 20-22 are only for income which potentially will be doubly taxed.

These pages as suggested can only be completed online through third party software as HMRC software does not have this section.

You can complete a paper copy of the return instead or purchase third party software

Self Assessment commercial software suppliers

Deadlines for self assement filing can be found here

Self Assessment tax returns

Thank you

Hi, I am also similar to C Law, If I become a UK tax resident in the middle of a tax year, and am entitled to the split year treatment, do I have to file a self-assessment? I have no any income after arrived UK, only overseas income earned before I become a UK tax resident (e.g. income earned when I was in overseas before moving to the UK & not yet a UK tax resident)? Thanks a lot.

hi HMRC admin, I have a similar question that, if I am qualified for the split year treatment in the current tax year, assuming that my entire income for the tax year before becoming a tax resident is GBP 80k and my income in the UK is GBP 50k after becoming tax resident (i.e. total GBP 130k in the current tax year). I understand that I will only need to report the 50K income to HMRC, correct? And if so, my tax rate band this year should be Basic (20%) for this year, or it should be consider as higher rate band (40%)? thanks

Hi keikoo

If you qualify for split year the you only need to declare your worldwide income for the UK part of the year.

Your income will then be based on the UK earnings at the relevant rate bands:

Income Tax rates and Personal Allowances

Thankyou.

Regards.

hi Admin, Thanks for your reply. Having said that, based on the example, I am reporting GBP 50k of my overseas income after being a UK tax resident, and I am still entitle to the 12570 allowance. And the income is between £12,571 and £50,270, so it's Basic rate band. Therefore, £50,000 - £12570 = £37,430 (taxable amount) And my tax due shall be £37,430 x 20% = £ 7,486.00, right? Thank you.

Hi keikoo

You would still be entitled to your personal allowance for the UK part of the year against any of your income for that part. 

Thankyou.

Regards.

Thank you for your reply. And can you also confirm that in the example above, the tax rate band is Basic Rate as only the income after being an UK resident is counted (GBP50,000)? Thanks

Hi

Yes this would be correct also. 

Thankyou.

Regards.

Hi, I departed from the UK in 2021. During my UK time I earned money both in the UK and overseas (overseas part was taxed overseas accordingly to the overseas tax laws). The total of both earnings during UK part of the year is less than the personal allowance in the UK for 2021. I qualify for 3rd case of split year treatment. After I departed I earn money and are taxed only in the country I departed to and earn at. Which amount do I include on the Self Assesment? Only UK part of the year from both of the countries? On form SA109, do I need to tick any of the boxes: 15, 16, 17 to show I want to use my personal allowance regarding the earnings from both countries earned during the UK part (which would entitle me to a full refund)? Do I need to additionally fill out any of the boxes 18-22 and get claim form 302 or 304 filled out as well? Which income do I list there if yes? All income during UK part that I would like to get full refund on or earnings from non-UK part of the year that I do not want to pay additional tax since I'm claiming split year treatment on them? Many thanks for the guidance!

Hi,

If you qualify for split year then you only need to declare income for the UK part of the year.

You can see the following guidance on the completion of the SA109 with regards to this:

Residence, remittance basis etc (Self Assessment SA109)

Boxes 18-22 would only apply if you are claiming tax relief in the UK under a double taxation agreement. 

Thank you.

Hi, Similar question as above regarding departing UK mid year. My spouse will leave soon and I will leave UK at the end of June 2022. I believe I will qualify for split year (let's assume that) We will keep our family home but it will be rented out (to non-related parties) as we will be out of the country for at least 4 years. We will keep some saving accounts in UK My employer will keep paying me out of the UK payroll (at least for a few months, until they can move me to a non-UK payroll in 2023) but all the work will be conducted from abroad starting from July 2022. I understand that if I qualify for split year, I will need to put in the self assessment 2022-23: - 100% of the rental income (as it is UK taxed throughout) - any dividend / interest until end of June 2022 - all my work income up until end of June 2022 My question is a practical one. If next year HR gives me a P60 with the entire 2022-23 income, how do I calculate the amount corresponding to UK work? Do I take the number in the P60 for the full year and do a ratio of days worked in UK vs days worked throughout the year? Or (days 6th April - End of June) / 365? In terms of various allowances (and in particular the £40k pension allowance) do they get pro-rated, or am I allowed to contribute to pension up to the threshold? I could be at the border of the basic and high tax rate band and I was trying to assess how much to contribute for the year. Many thanks for the help!

Hi FabGio g

Please see the following guidance which will help answer your questions relating to your specific circumstances :

Tax on foreign income

and

The SRT: Split year treatment: When will split year treatment apply

With regards to your pension contributions.

Thankyou.

Regards.

Hi HMRC Admin, I will arrive and start living in UK in May 2022. I arranged a rental contract effective May 3rd, and will land UK on May 12th. I will start a job in July 11th. I have sold all my properties/shares and received by employment income in my home country by Apr 30th 2022. For split year treatment, which date is the last overseas date for my case? And for self-assessment, am I right I do not need to report any income on or before the last overseas date? Many thanks in advance! Regards.

Hi,


Please see here for guidance and examples on split year treatment :

Residence, Domicile and Remittance Basis Manual


Thank you.

In the 2021-2022 tax year I arrived in the UK to live in my ONLY home effective 23rd September having previously lived in Grenada until 19th June (in transit thereafter mainly in Portugal). I have UK State Pension and declared the entire income received in the tax year for UK tax however I'm not sure if I am actually entitled to use split year treatment for it in the same way I have done for other income. I was resident for tax purposes in Grenada from 4th March 2020 to 19th June 2021 but did not complete forms to show that was the case as it is not necessary to file tax returns there if one has ZERO Grenada arising income. I only spent one day (22nd September) in the UK before I moved into my own home in the 2021-2022 tax year.

Thank you in advance for any assistance that you can provide regarding my post of 2 days ago. I'm sorry that I didn't put that in earlier.

Hi peter spurway,
Please review the guidance and qualification rules on Split Year Treatment:
RDRM12030 
Thank you