Split year treatment

Hi Peter Chan,

If you qualify for split year then you only report any foreign income for the UK part of the year. You can see guidance here:

RDRM12000 - Residence: The SRT: Split year treatment: Contents

If you do not qualify then you will need to report all your foreign income to the UK. You can see more information here

Tax on foreign income

The following guidance will help you work out if split year treatment applies. 

RDRM12150 - Residence: The SRT: Split year treatment: Case 4: Starting to have a home in the UK only

Thank you.

Hi PeterChan,

You will need to work out your residence position first.  

If you are considered resident in the UK for the full tax year, then the income in this period is also taxable in the UK.  

A foreign tax credit could be claimed to avoid double taxation, provided their is a double taxation agreement between both countries.  

If you are considered not resident in the UK for the full tax year, you can then consider if you meet the criteria required for split year treatment to apply.  

You will need to decide if test 4 or 8 apply.  You can find guidance on this at RDR1 (Residence, domicile and the remittance basis: RDR1) and the relevant tests at RDR3 using the link in RDR1.  

Split year treatment can only be claimed by completing a self assessment tax return (SA100) and by using the resident supplementary page (SA109).  

The tax return can be submitted online, provided you purchase 3rd party commercial software (File your Self Assessment tax return online).

Thank you.

Hi How do I apply split tax year treatment in a self assessment? I moved to England, and arrived on 17 February 2023. I am busy with my self assessment for 17 February 2023 - 5 April 2023. Thanks

Hi,

If you qualify for split year then you only report any foreign income for the UK part of the year.

RDRM12000 - Residence: The SRT: Split year treatment

If you do not qualify then you will need to report all your foreign income to the UK.

Tax on foreign income

The guidance at RDRM12150 at GOV.UK will help you work out if split year treatment applies. 

Thank you.