Split year treatment

I have checked the rules that I am qualified for the split year treatment and the split year date would be on 2 Feb 2022. And I realised that I only need to report the income for the UK part of the tax year. My suitation is, I moved to UK on 3 Feb 2022 and become a tax resident for 2021-22 tax year. My overseas income in this tax year before I moved to UK is 40000 pounds, but I only have total 200 pounds income incurred from 3 Feb 2022 till the end of this tax year. My questions are, do I need to file the tax assessment return / declare the income as the UK part is only 200 pounds? And do I need to apply split year treatment (SA109) if I don't need to file the tax assessment return? Thanks a lot!

Hi,

There is no need for a tax return based on the information provided.

You do not need to declare the income from Hong Kong prior to your arrival in the UK.

Thank you.

Hi Jade Wong
You dont need to declare the income received prior to your tax residence in the UK.
You would only need the SA109 if you are claiming the remittance basis to include foreign income you had/have.
Thankyou.
Regards.

Hi, I'm an EU citizen and I left the UK halfway through the year and I'm classed as UK Resident for tax year 2021-22. From 01/01/2022 I'm also tax resident in my new country. I have already reviewed the rules and understand I am qualified for the split year treatment. My question is, in the SA109 form, in box number 16 (and 17), should I tick that box ? Would that section apply to me if I'm considered uk resident? Thanks! Luis

Hi,
 

If you want to claim personal llowances then yes you need to complete these boxes  . Thank you.

 

Hello HMRC admin, I arrived in UK from Hong Kong in September 2021 and became a UK tax resident in 2021-22. Prior to coming to UK, I had income in Hong Kong from my previous employment and also from saving insurance. I have checked the criteria and am confident that I am qualified for split-year arrangement and it's not necessary to report my income in Hong Kong in 2021-22 before coming to UK. My question is: Do I need to submit a self-assessment tax return only for the purpose of applying for the split-year arrangement? I thought the answer was yes but based on admins' replies in this thread I am now slightly confused. If I need to file a tax return in order to apply for split-year treatment, shall I fill in both SA100 and SA109? Thank you so much. DL

Hi,

Further guidance is available here:

RDRM10245 - Residence: Coming to the United Kingdom: The liability for the year of arrival

If you have no other Self Assessment criteria the as per the link previously given, no return will be required.

Thank you.

Hello HMRC Admin 19, I would appreciate your advice on the following. I am a tax resident for the 2022/2023 tax year. However, I am leaving the UK permanently after spending 130 days in the country. I want to apply for the split-year treatment option for which I will qualify. Do I have to communicate anything to HMRC about my departure from the UK? Do I need to apply for the split-year treatment through a form or website? Or is it only for me to state in my self-assessment at the end of the tax year? Thank you.

Hi
 

Isaac Elizondo Garcia,

 

Split year treatment can only be claimed by completing a self assessment tax return (SA100) and the residence supplementary page (SA109).  If you have a government gateway user ID and password and have created a personal tax account, you can submit the tax return online.  Alternatively, the tax return can be downloaded and printed off at www.gov.uk  . Thank you.

Hi, I entered UK and starting living here on Jun 2021 from Hong Kong, I had employment income until Jun 2021 in Hong Kong and no overseas income after I lived in UK. I had employment income in UK from 2022. Please advise if I need to report my employment income prior entry UK to HMRC. Do I need to file self-assessment and apply for split year treatment for tax year 2021-2022? Thanks!

Hi HMRC Admin, My status: I came to the UK with BNO Visa together with my wife on 28 July 2021 (lived in the UK for longer than 183 days). I quit my job in Hong Kong and completed tax clearance before I came to the UK (my oversea part income is already taxed in HK). I sold my main resident in Hong Kong before I came to the UK (the capital gain is not taxable in the UK). I am holding another property in HJ in joint names with my mother, she is staying in this property. I stayed in Airbnb A with my wife from 28 July 2021 to 24 Aug 2021 (less than 30 days). We then moved to AirBnB B and stayed there from 24 Aug 2021 to 14 Sep 2021 (also less than 30 days) We eventually rented an apartment and stayed there from 14 Sep 2021 till now. My 1st question: Q1) Based on my situation, I am qualified for split year treatment under case 4, so I don’t need to declare the income/capital gain received prior to my tax residence in the UK, but I am not sure whether the UK part of the split year commences on 28 July (landed) or 287 Aug (30 days after landing) or 14 Sep (has a home in the UK). Please advise which date my UK part commences. I am still being unemployed till now. I have no other income apart from small amount of savings interest from my Hong Kong bank account. My total income from foreign savings interest for 2021/22 is less than the allowance (£1,000). My next questions: Q2) Do I need to file a self-assessment tax return to declare the savings interest even it is below the personal allowance? Q3) If I keep my savings in HK and do not remit to the UK, do I still need to declare the savings interest to HMRC? If yes, which form do I need to fill in and submit? SA100, SA109 and what else? After becoming a UK tax resident, I surrendered my life insurance policy while it was still in force. As this was early cancellation, the cash surrender value that I received was lower than the total premium I paid into the policy. My next question: Q4) Do I need to declare this loss to HMRC? Kind Regards

Hi,

HMRC cannot determine whether split year treatment applies. This is a decision you need to make. You will need to perform the tests to determine whether split year treatment applies.

RDRM12030 - Residence: The SRT: Split year treatment: When will split year treatment apply

You can find further guidance in helpsheet HS304.

Non-residents tax relief under double taxation agreements (Self Assessment helpsheet HS304)

Thank you.

Hi
An individual will only meet the home test if they have only one home and that home is in the Uk or if they have more that one home, all of those homes are in the UK.
If a person is not in the UK at the end of that day, then that day is not counted as a day spent in the UK.
If you have foreign income of any amount, you will need to declare this in a self assessment tax return.
If the foreign income and gains remain offshore and are never regarded as remitted to the UK, the tax charge is deferred indefinitely.
Thankyou.
Regards.

Hi HMRC Admin, Thank you for your advice regarding home test. My situation is that, I sold my resident in Hong Kong before I came to the UK, but I am still holding another property in Hong Kong in joint names with my mother. I stayed in 2 different AirBnB with my wife for less then 30 days each until we moved into a rental apartment for long stay on 14 Sep 2021 till now. Then when do I meet the home test? 1) On 28 July 2021 (the date I landed)? 2) On 27 Aug 2021 (30 days after landing)? 3) On 14 Sep 2021 (when I has a home in the UK)? Kind Regards

Hi HMRC Admin, I am qualified for split year treatment, so I need to complete SA109 which is not available online unless I purchase third party software. Does it mean that I have to do SA100 and SA109 all together on paper? Can I first do SA100 online and followed by SA109 on paper? Kind Regards

Hi
 

Benny L,   If claiming split year treatment, you will do this on the SA109 residence page/section of your tax return. You will declare only the income received since your deemed date of residence. You will not need to report any overseas gain unless this happended after you  became resident in UK . THank you.

Do I report the Foreign Capital Gain of "Investment - Share or bonds" in SA106 or repot in SA108? Seems all Foreign Income Gain including investment of share are need to be reported in SA106. Can I report SA100 by on line account and SA 109 (no-line reporting) by paper by post separately?

Hi HCL_Chan,

It depends on the split year case you are applying under. You can see guidance here:

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

Thank you.

Hi HCL_Chan,

All relevant pages for your return must be submtted at the same time whether you use paper or online.

Thank you.

Hi HMRC Admin, I am qualified for split year treatment, I have question when I am completing SA109. As per SA109-notes: If you’re claiming split year treatment, and you’ve put ‘X’ in box 3, the entry in box 10 should only be for days spent in the UK for the overseas part of the year. I come to the UK on 28 July 2021, my UK part of the split year commences on 14 Sep 2021. I put ‘X’ in box 3 of SA109, and I enter 28 07 2021 in box 6. My question: For box 10 (Number of days spent in the UK during 2021-22), I enter 048, which is the number of days between 28 July and 14 Sep (= the days spent in the UK for my overseas part of the year). Is my answer for box 10 correct? Kind Regards