Split year treatment

Hi Bill Wong,

You will need to determine your residence status, to determine the action needed. You can see the guidance on residence here:

Guidance note for residence, domicile and the remittance basis: RDR1

You can take the tests here:

RDR3 Statutory Residence Test

If split year treatment applies you will need to complete a Self Assessment tax return to claim this.

You will need to complete a Self Assessment tax return anyway, as the foreign income generated while you are resident in the UK, is taxable in the UK.  You can register here:

Register for Self Assessment

Thank you.

I am eligible to apply for the split year treatment and I will land Uk in the mid August. First, I would like to know whether I still entitle to the full allowance of £12570 in Tax year 2023/24? Or the personal allowance will be deducted by proportion according to my duration of stay in UK? Second, as I have my early retirement in another country and I have applied to get back my pension successfully before I left to UK. However, the pension can only be bank in to my account after I land in UK. Will the pension need to pay tax? thanks.

Hi sonia Wong,
With split year treatment, the full allowance is available against the UK taxable income.
The pension relating to the period you were overseas, is not taxable.
Only the pension arising from your arrival in the UK, will be taxable in the UK, and should be reported on a Self Assessment Tax return.
Thank you. 

Upon my arrival in the UK on 7th November 2022, it marked my first time in the country. I had a permanent home in the UK on 15th December 2022. After a self-check with HRMC, I found that I am eligible as a tax resident. Here are the key points: 1. Before 7th November 2022, I had a full-time job that was taxable overseas. 2. Between 7th November 2022 and 24th March 2023, I did not work full-time or part-time in the UK. However, after 24th March 2023, I had a full-time job with tax payments via PAYE. 3. From 7th November 2022 to 5th April 2023, I earned freelance income below £1000. My question is: Should I apply for split year treatment for the tax year 2022-2023? Thank you, Lok

Hi HMRC Admin. My partner qualified for split year treatment on leaving the UK during the 2019-2020 tax year. He has been non-UK tax resident since his initial departure and to date, and intends to continue to be so indefinitely. Unfortunately, his 2019/2020 tax return was completed incorrectly, not claiming the split year treatment, and therefore he has overpaid PAYE during that tax year (all following years were completed correctly). We cannot find any guidance as to how to apply for a refund of the over paid PAYE, other than to just write a letter to HMRC. Please could confirm that this is the correct approach, or alternatively point us in the right direction of any guidance. With thanks in advance. Emma.

Hi Emma Callister,
He will need to send in a claim for overpayment relief. ensure all information below is noted.
All claims must be in writing to us at: Self Assessment, HM Revenue and Customs, BX9 1AS, United Kingdom.
Please tell us they are claiming overpayment relief give full details of the claim including the amount of tax they have overpaid.
Why they have paid too much tax the tax year / accounting period if they have already appealed the calculation.
If they are claiming repayment any supporting documents showing tax paid be signed by the customer.
Even if sent by an agent confirm the details given are 'correct and complete to the best of my knowledge and belief.
Thank you. 

Hi Lok Kwan,
 Sorry, we cannot advise you on whether to apply for that or not as it is up to you to determine your residence status.
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: Contents
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 www.gov.uk will help you work out if split year treatment applies.
Thank you.  


 
 

Hi HRMC Admin, I arrived in the UK on 26th September 2022, using a BNO visa, and became a UK tax resident on the same date. During my employment as a high school teacher in Hong Kong, I worked until 31st August 2022 and was entitled to the full balance of my retirement fund (~£400,000) upon leaving the school service. My retirement fund was entirely contributed by my employer within the period of my employment at the school (1st September 2000 – 31st August 2022). However, my Hong Kong employer disbursed my final wages and the full balance of my retirement fund (~£400,000) into my bank account on 15th October 2022. By that time, I was already a UK tax resident. My question pertains to whether I am required to submit a self-assessment and report my Hong Kong final wages and the full balance of my retirement fund, which were credited into my account on 15th October 2022, to HMRC. As I believe I qualify for a split year treatment in the tax year 2022-2023, I am seeking guidance on the reporting requirements for these specific funds. I would greatly appreciate your advice on how to proceed in this matter. If necessary, please provide me with the appropriate procedure to ensure I meet my obligations as a UK tax resident while considering the unique circumstances of my arrival and the timing of the funds received. Thanks!

Hi ERIC LAW,

Under the terms of the double taxation treaty, this income is not taxable in the UK and you do not need to declare it. 

Thank you.

Dear HMRC Admin, I would like to ask that I have a flat in Hong Kong, which is still vacancy without selling. Then I arrived in the UK on 16 Sept 2022, then which split year treatment is correct? Case 4 or Case 8, thank you for your attention.

Hi
 

Catherine Kwok ,   I regret that we cannot advise you whether case 4 or case 8 applies to your circumstances.  If you are unable to determine this for yourself, you may need to seek the advice of a finacial advisor. Thank you.

Hi Zia Khan,
HMRC cannot advise you on this as your residence is for you to determine based on the guidance available:
 RDRM12000 - Residence: The SRT: Split year treatment: Contents
Thank you. 

Hi Is there a conflict between the 'Split Year Treatment' and tax treatment to UK domicled taxpayer? For example, if I was a non-UK resident in 21/22, I moved to the UK from Austrilia on 1st July 2022 and started a full time job for the next 3 years, I received £30,000 worth of employment income with tax deducted at source in Australiain May and June 2022 before I came to the UK. My question is, for my 22/23 self assessment tax return, do I have to report the £30,000 foreign income with my other UK sourced income, or I can apply the 'Split Year Treatment' rule (I believe I am qualifying for) and not including the £30,000 earned outside the UK before my arrival? Thank you.

Hi Tim,

If you meet the criteria for the split year, you would only declare your income from the date you arrived in the UK.  If split year treatment does not apply and you are tax resident for the full tax year, you will need to declare the Australian income and claim a foreign tax credit on the overseas Income Tax paid.

Thank you.

Hi, I am relocating to the UK from Germany as a result of an internal company transfer. I plan to arrive on 3 January. A condition of transfer is that my employment in Germany ends the day before my employment in the UK starts. If my last working day in Germany is 3 January and my first working day in the UK is 4 January, will I have to report in the UK my German income for 3 January -- a "German" vacation day that I will spend travelling from one place to another? Should I instead start my contract in the UK on 3 January and end my employment in Germany on 2 January? Unfortunately I wasn't able to find an answer in the manual. Thanks in advance.

Hi, I would like to enquire about the split year treatment. 1. I signed a rental contract to rent a property in UK which the start date was on 10Aug2022. ButI arrived the UK on 8Sep2022 and started to live in the rental property since the arrival date. Do i consider 10Aug2022 or 8Sep2022 to be the split year date? 2.I am not sure which cases apply to me and to my wife. It looks like both cases 4 and 8 can be applied to us. We lived in Hong Kong before and started to live in the UK since 8Sep2022. Before 8Sep2022, we did not have any UK home. And after we arrived the UK, we considered here to be the only home for our family. But i still have a property in Hong Kong which is under my name - we are no longer living there since 8Sep2022. May I know under this circumstances which case will apply to us? Thank you.

Hi leborham,
This would depend on the outcome of the statutory residence tests.
You will need to review the guidance and take the tests and confirm if split year treatment applies.
If you are not resident for the full tax year only declare your UK income from the date your arrived in the UK.
If you are considered resident, you will then need to consider whether split year treatment applies, if it does, you claim this via a Self Assessment tax return and only declare your UK income from the date you arrived.
If split year treatment does not apply , you will need to declare your German income and claim a tax credit for any German tax paid.
RDR3 Statutory Residence Test
Thank you. 

Hi yellow w

The date you arrived in the UK, is used for split year treatment purposes.  
Any world-wide income in the resident side of the split, should be declared in the self assessment tax return.  
We cannot advise the outcome of the residency tests or which tests will apply in your circumstances.  
This is something you need to decide for yourself or seek the advice of a professional, where you are unable to do so.

Thank you

Hi HRMC Admin, I had signed a rent contract for a UK apartment on April 8, 2022, before I arrived in the UK. Following that, I arrived in the United Kingdom on May 31, 2022. For the date of split-year treatment, will it be counted as part of the UK by April 8, 2022, or May 31, 2022? Many thanks