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.

Hi,

You need to be UK resident when the contribution was paid to get tax relief. As you mad ethe payment ptior to moving to the UK, no relief is due.

PTM044100 - Contributions: tax relief for members: conditions

Thank you.

Hi, I have the following situation and need some guidance on what to do: Scenario: 1. I have moved to Spain permanently on 1st Jan 2023 – so believe I can claim Split Year treatment under Case 3 2. I have been tax resident in UK since 1975 – and am a pensioner (prior to that I was resident in Spain) 3. I am a Spanish national (with right to reside in UK and Spain) 4. I have the following income (all pensions): a. UK State pension b. Spanish state pension c. Various UK pensions 5. All these pensions are currently taxed at source and will continue to be paid to me (so I have continuing UK income indefinitely) 6. I am now registered for tax in Spain for year 2023 (their tax year is 1 Jan -> 31 Dec) – and have the certificate of Tax Residency for 2023 from the Spanish tax authorities 7. As a Spanish National – under the dual taxation treaty with Spain, I can claim Full Relief on all my UK pensions (which will continue to be paid to me on-going) 8. I have already submitted form P85 notifying of my change of Tax Residency Questions: 1. In my tax return for 2022-23 do I declare pension income (and tax) for the FULL UK tax year (until Apr 2023) or only for the part year until I left the UK (31 Dec 2022)? a. Specifically the Gross and Tax boxes - in the ‘Pensions’ section of the SA100 2. In the ‘Foreign Income’ form – SA106, should I declare the full Spanish state pension or only for the part year where I was UK tax resident? (6 Apr 2022->31 Dec 2022) - similar to question 1 above 3. Are my full UK personal allowances available to me, even though I am only resident for part of the year (or are the allowances pro-rata) 4. In order to stop paying any tax at source, should I use form “DT-Individual”? a. The objective being to pay no tax in the UK (Full Relief) and only pay tax in Spain 5. In order to reclaim Income Tax overpaid in the UK for 2022-23 and 2023-24 – which form should I use? a. Should I do this via form HS304? b. Or via the Reclaim section of form DT-Individual? i. My current assumption is that it will take a while for the process to stop UK Tax deduction at source on all my pensions (following the submission of “DT-Individual”). ii. If this assumption is correct, should I continue to complete UK tax returns in future years – and in particular SA109+HS304 to claim back the overpaid tax until such time as tax relief at source can be achieved? One observation - This scenario - of a pensioner moving overseas but continuing to have UK pensions paid - on which full relief can be claimed (and which should therefore be paid Gross) - is surely very common. It is a shame that there are no guidance notes covering this. May I also say that this forum has been very informative so far - even if not all my questions have been answered. Many thanks

Hi Jim Bow,
You need to submitt the DT Individual form to have the NT status applied to your UK income.
This can be backdated to the 22/23 tax year.
If you have not already submitted your return for the year, yes the HS304 should be included with the return.
You will still be able to claim personal allowances.
Further guidance is here:
Tax on your UK income if you live abroad
Thank you. 
 

Dear HMRC Admin 25, Thank you for your reply. It is very helpful. There is one question which I'm not completely clear on the answer to - which I hope you can resolve. I am not completely clear on whether I should declare (on the SA100) my FULL UK income for the whole of 22/23 or only the income for the part of the year when I was UK tax resident. I can see in the 'Tax on your UK income if you live abroad' page that it states: "You do not need to report your income to HMRC if you’ve already claimed tax relief under a ‘double-taxation agreement’." I intend to use the HS304 to reclaim tax deducted at source on UK Income while I was no longer resident. And I therefore take this to mean that in my SA100 I should NOT declare my UK income for the period when I was not resident (since I am reclaiming it under the UK/Spain Dual Taxation Treaty). PLEASE CAN YOU CONFIRM THAT THIS IS THE CORRECT APPROACH Also, the HS304 form makes specific reference to boxes 1 & 2 in the Employment pages. I am taking this to be a general reference to ANY UK income, including UK Pensions - which is what applies in my case. IF YOU COULD CONFIRM THAT THIS REFERENCE IN HS304 ALSO REFERS TO PENSIONS, EVEN THOUGH IT ONLY STATES 'EMPLOYMENT'. Many thanks

Dear Sir/Madam, I am moving to the UK and would like to apply for split year tax treatment. If I arrive in early July I will be resident for 9 of 12 months of the tax year. Will my personal allowance and tax thresholds fall in proportion to the amount of time I am resident in the country? For example would my personal allowance fall from £12,570 to £9,248 (£12,570 * 9/12)? My annual salary will be £25,000 or £26,000, and if my thresholds don't change in proportion to the share of the year I'm resident in the UK I will only pay the same amount of income tax as someone resident in the UK for the entire year who earns £18,750 or £19,500, and far less income tax per month than someone resident in the UK for the entire year who earns £25,000 or £26,000. This is obviously a good deal for me but I'd just like to check that this is correct to make budgetting/pensions/ISA/savings decisions.

Hi Jim Bow,

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

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

The HS304 is for employment and pensions.

Thank you.

Hello SacsainÉireannach

You will still get the full personal allowance of £12570 if applicable to claim. Your pay will be assessed on the actual income received in the UK.

Thank you

I landed UK in 14 May 2022, support my employer(no branch in UK) until 30 May 2022. The leasing contract started on Mar 2022.I would like to check the split year will be start in Mar 2022 following the leasing start date?

Hi HMRC My situation is that I had income in Hong Kong before October 29th. I arrived in the UK on October 29th 2022 and until now (July 5th, 2023), I haven't had any work income in the UK. How to fill out tax forms? Thank you so much Ki

Dear HMRC Admin 19, With reference to my original post of 12 June and your reply of 26 June. Thank you for your information, however, one question remains - about which I am unclear and I'm not sure of the guidance. In your reply of 26 June, you state that I should report any FOREIGN income for the UK part of the Split Year. That is clear to me now, however, I am still not certain about my UK income. I have had, and will continue to have UK pension income. Including spanning the split-year. Therefore the key question for me is whether, during a SPLIT YEAR, I report on the SA100 only the part of my UK income which is covered by the UK part of the split year. Specifically, I have 9/12 (Apr-Dec) of the split year in the UK and 3/12 (Jan-Mar) in Spain. If my UK income for Apr-Dec were £9000 (UK part of the split year) and If my UK income for Jan-Mar were £3000 (Spain part of the split year) Can you please confirm that I would report the £9000 on my SA100 (i.e. only the UK income covered by the UK part of the split year). This is the point I need clarity on please.

Hi HK user & mrk.li

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

RDRM12000 - Residence

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.

I have checked that I fulfill the split year requirement. I arrived at UK on 1/1/2023 and I have the following enquiries: (1) I sold two flats BEFORE arriving in UK . One is self-living and another is for renting out. Both transactions have been completed before I arrive in UK. Do I need to report these two transactions for the split year? If yes, may I know which form should I fill in? (2) I have started a 1-year fixed rate saving deposit from 1/8/2022 to 31/7/2023. The interest will be paid on 31/7/2023. I understand I need to report the interest in the tax year when I receive the interest. So, I think I do not need to report it this year. Am I right? I will report the interest (say GBP10000) I have earned in NEXT tax year as I will receive the interest on 31/7/2023. But I am not sure whether I can only report the interest which belongs to the part after I arrive at UK on 1/1/2023 (i.e. GBP 10000 X 7 months /12 months)? Many thanks

Hi Jim Bow,

You need to declare all of your UK income for the whole tax year.

Thank you.

Hi, I want to know how much amount of foreign income that I need to report. I signed a contract with a foreign company on 1st of the month and have started to work too. I moved to the UK on 13th and has become a tax resident since 27th. The monthly payment was paid on 28th. Do I need to put the whole amount that I received on 28th? Or I calculate on a pro rata basis? Thank you.

Hi Sunsun Hung
1. You do not report the income prior to coming to the UK  
2. The interest should be reported in the 23/24 tax year and it will be the full amount of interest that you receive.
Thankyou.