Split year treatment

Hi UK expat,
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 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 HMRC, I have a question about the Personal Tax Free Allowance of £12,570 and whether the allowance is pro rata'd where the split year treatment applies. Scenario: - UK Tax Resident for 2023/24 - Partial UK Tax Resident for 2024/25 (moving overseas). For example, UK Tax Resident from 6 April 2024 to 31 August 2024. - Relocating to Australia, so would be a tax resident in Australia after this period From what I understand, based on the split year treatment, I would need to pay tax in the UK on income earned between 6 April 2024 to 31 August 2024. My question is - am I able to claim the full Personal Tax Free Allowance of £12,570 for this period? Thanks.

Hi,

Personal allowances are not pro-rata and the full allowance is given.

Thank you.

Hi, I have moved to the UAE for work at the end of Dec 2023. My only income in the UK moving forward is rental income from my house. I believe I fall into the Split year Case 1 category. I generally do a self assessment tax return and have accordingly submitted a self assessment for tax year 2023/2024 online and have mentioned this situation in the free text. However, since then I understand that I need to also send the form SA109 by post. A few questions based on this; 1. Can I send this via post now? and if so, whats the postal address, as I cannot find it on the form. 2. I was on holiday from 24th Dec 2023 to 21nd Jan 2024 outside of UK, before I started employment in UAE. Does my reference period start from 24th Dec or 22nd Jan? And if the former, would I include those 28 days as part of my 'gap between employments?' 3. I am confused about whether I qualify for the third automatic overseas test as asked in the form. I am particularly confused about the statement that says relevant tax year (i.e. the individual spends less than 91 days in the UK in the relevant year). In this case is the relevant tax year, the part of the year where I was working in UAE? Thanks

Hi riy87

Regardless of whether you are UK tax resident or not.  The UK has the right to tax any income from property that is located in the UK.  
This is declared through a self assessment tax return every year.  The HMRC online version of the tax return, does not support the residence section, so cannot be used to sumit a tax return.  
In this situation, you must submit SA100, SA105 & SA109 on paper in its entirety.  
You can download the form at Self Assessment tax return forms.  
If you have a government gateway user ID and password, you can choose to buy a commercial tax return that supports the residence section.  
You complete the commercial tax return and submit it using the user id and password.  If you cannot obtain a government gateway user ID and password, the commercial tax return option is not available.  
You can find a list of commercial suppliers at Self Assessment commercial software suppliers

Thank you

Hi, I have a question about the process of Split Year Treatment Application. If I apply for the Split Year Treatment via SA109, should I hold my submission of other tax assessment Form, say SA106, pending the application result of Split Year Treatment application? Or If I need to submit SA109 and SA106 in one go for HMRC to consider all my tax assessment. If HRMC will not notify taxpayer solely on Split Year Treatment application, should I report all my income for tax assessment after the day which the UK part of the year begins (box 6 of SA109)? Thank you.

Hi M L Lee,
The whole tax return must be sent together at the same time.
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:
Tax on foreign income
The guidance at:
RDRM12150 - Residence: The SRT: Split year treatment: Case 4: Starting to have a home in the UK only
Will help you work out if split year treatment applies. 
Thank you. 

 
 

I would like to inquire whether my wife and I are required to apply for split year treatment under our current circumstances. Below is a summary of our situation: 1. I was employed in Hong Kong until 2 May 2023, after which I resigned from my position. 2. We relocated to the UK on 14 June 2023 by using BNO Visa and have since settled all tax matters with the Hong Kong Inland Revenue Department. 3. My wife and I began renting a flat in the UK from 14 June 2023 under a 12-month tenancy agreement. 4. I secured employment and started working on 1 November 2023. Taxes are being deducted from my payroll on a monthly basis. 5. My wife has not been employed in Hong Kong for over 10 years and has not taken up any employment in the UK since our move. Could you kindly advise whether split year treatment applies to us in this case? Thank you for your assistance, and I look forward to your guidance on this matter.

Hi HMRC, I hope this message finds you well. I am writing to inquire whether my wife and I are required to apply for split year treatment based on our current circumstances. Please find a summary of our situation below: 1. I was employed in Hong Kong until 2 May 2023, after which I resigned from my position. 2. I relocated to the UK on 14 June 2023 and have since settled all tax obligations with the Hong Kong Inland Revenue Department. 3. My wife and I entered into a 12-month tenancy agreement for a flat in the UK, starting from 14 June 2023. 4. I secured employment and began working on 1 November 2023, with taxes being deducted from my payroll on a monthly basis. 5. My wife has not been employed in Hong Kong for over 10 years and has not taken up employment in the UK since our relocation. Could you kindly advise whether split year treatment applies to us in this case? Thank you in advance for your assistance. I look forward to your guidance on this matter. Leo

Hi
If you qualify for split year then you only report any foreign income for the UK part of the year 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 www.gov.uk will help you work out if split year treatment applies. 

 

 

Hi, I would like to apply a split year treatment for 2023 -2024, I'm onboard on 13 June, 23, and rental started on 31 July, 23, I'm on leave from 13 -30 June. (no working at all) After 1 July, 23, I resume remote working from the UK for my employer who based in Hong Kong, My question is the income earn during my holiday (13-30 June), is it a taxable income or foreign income because i'm Non-Resident in this period ?

Subject: Inquiry Regarding Double Taxation and Tax Treatment of Overseas Salary Income I am writing to seek guidance regarding the tax treatment of salary income received after I became a UK tax resident. I am concerned about potential double taxation and would appreciate your advice on how to address this situation. Background Information: 1. Prior to moving to the UK, I was employed in Hong Kong and earned income during my time there. 2. After moving to the UK and becoming a UK tax resident, I received a salary payment from my previous employer in Hong Kong. • This payment represents compensation for accumulated annual leave earned during my employment in Hong Kong prior to my resignation and relocation to the UK. • It is not related to services performed in the UK. 3. While I understand that salary payments are generally subject to UK income tax once I am a UK resident, this income was earned for work completed outside the UK. Concern: • The Inland Revenue Department (IRD) in Hong Kong has not yet issued a tax assessment or determined the amount of tax I owe for this income. • Since I received this payment after becoming a UK tax resident, it may be taxed in the UK. If Hong Kong also taxes this income, it could result in double taxation. Inquiry: Given this situation, I would like clarification on the following: 1. Can I claim relief under the UK-Hong Kong Double Taxation Agreement to avoid being taxed twice on the same income? 2. If I pay tax on this income in Hong Kong at a later date, how can I apply for a deduction or refund of any UK tax already paid? 3. Are there specific forms, procedures, or documentation I need to provide when completing my Self Assessment return to address this situation? Your assistance in clarifying the tax implications and available reliefs for this overseas income would be greatly appreciated. Thank you for your time and support, and I look forward to your response.

Hi DLHK2UK,
Where split year treatment applies, it means that you are tax resident in the UK for the whole tax year.  As you are tax resident for the whole tax year, you are required to declare in a Self Assessment tax return, all of your UK income and UK capital gains in the tax year and all of your worldwide income and capital gains, arising while you are resident in the UK.  
Split year treatment allows you to exclude your worldwide income arising in the period you were not resident in the UK.
Thank you. 

Hi Y Chan,
Your Hong Kong employment income is taxable only in Hong Kong, because that's where you were resident, when earning the income. This includes the back pay for your annual leave. It should not be included in your tax return. You may need to amend your return.
Thank you.