Remitted foreign savings (arising basis)

Hi, I'm doing my self assessment tax return for the first time, i'm doing it myself and need some help. I am not claiming remittance basis, i'm doing my self assessment tax return directly on the HMRC website (which doesn't yet support remittance basis), so i'm claiming arising basis. My questions are mostly re. foreign income and gains. I think mostly understand 'Foreign Income' and 'Foreign Property' sections. But i don't fully understand the 'Remitted Foreign Savings' section. The thing that is confusing to me is that the section title is Remitted Foreign *Savings*, however, the questions within the section are similar to those in the Foreign *Income* section. They focus on income rather than savings. So, i have a few questions: 1. If, for example, i have foreign dividends of £1000 on which i paid foreign tax for which i would like to claim credit, and i remit £500 into the UK, am i required to report £1000 in the 'Foreign Dividends' section AND £500 in the 'Remitted Foreign Savings' section ? 2. Separately, if, for example, i have foreign rental income of £1000 on which i paid foreign tax for which i would like to claim credit, and i remit £1500 into the UK (£1000 rental income + £500 old savings), am i required to report £1000 in the 'Foreign Property' section AND £1000 in the 'Remitted Foreign Savings' section ? 3. Am i correct in understanding that the 'Foreign Property' section covers both foreign rental income as well as foreign capital gains (which might not be pertaining to the same property) ? 4. Is there a way to see how the tax calculation was made ? When i go to 'View Your Calculation' it just shows me the final calculated tax. It doesn't show me any calculations as such. Thank you

Hi, Follow-up: Re. the 'Remitted Foreign Savings' section (my Q1 and Q2), am i correct in understanding that this only needs to be filled if filing under the remittance basis ? Since i'm filing under the arising basis, my understanding is that i skip this section. Still requesting confirmation on my Q3. Re. my Q4, i have found the detailed calculations. However, could you explain what 'Foreign savings' is in the calculations, please. My understanding is that only foreign income earned during the year is added to 'Total income received'. It's not clear to me why there is an item called Foreign *savings* that is added to the taxable income. And finally, re. foreign capital gains tax relief. This has been brought up before. There is a long discussion in a past thread by some one else, and I went thru' the entire thread, and the question still seemed to remain unanswered. I have some foreign capital gains which i have reported, along with all the specific details included into the 'Capital gains' section. I paid some foreign tax on it, which also i included into the Capital gains section. When i was tailoring the return, i said to yes to claiming foreign capital gains tax credit relief. However, after i completed all the details and went to 'View your calculation', the foreign capital gains tax was never taken into account. Not even a single penny. Isn't this a glitch ? Thank you

Hi,
If claiming the arising basis you report all your income whether you remit it to the UK or not and this applies to all sources. you can see the full breakdown of your calculation by selecting the view/print your calulation button.
Thankyou.

Hi Suma Rao

You would only tick yes to the "Remitted foreign savings income" box if you have any remitted foreign savings income that is taxed on the remittance basis and you have remitted any of the savings income to the UK in the 2023 to 2024 tax year.  
Note that the starting rate for savings and the personal savings allowance do not apply to remitted foreign savings income.  
If claiming the arising basis you report ALL your income whether you remit it to the UK or not and this applies to all sources.  
So £1000 dividend would be shown in the foreign dividends section and £1000 property income in the property section of the foreign page
To ensure that foreign capital gains tax is included in the tax calculation, you need to declare it in the capital gains section.  
You only need include in the foreign section when you want to claim a foreign tax credit.

Thank you

Hi, Thank you for your responses, but it hasn't answered my questions. From the examples i took, i understand that i must show £1000 in the foreign dividends section and £1000 in the foreign property section. I have already done that. My question is: do i also need to show £500 in the remitted foreign savings section, aside from the other two sections ? I'm thinking no, since i've already shown all my income in the foreign dividends and foreign property section. My understanding is that i would only need to show £500 in the remitted foreign savings section if i wanted to claim remittance basis, and wouldn't be showing my full income in the other two sections. The thing that's confusing to me is that anyone claiming remittance basis cannot complete their tax return online themselves, isn't it ? They have to either file a paper return, or file thru' thirdparty software. So, what is the purpose of the 'Remitted Foreign Savings' section ? And re. foreign capital gains. You say: 'You only need include in the foreign section when you want to claim a foreign tax credit.' Does this mean that if i don't want to claim foreign tax credit relief, i don't have to declare foreign capital gains even if i'm filing on arising basis ? Thank you.

Hi HMRC Administrator, If I am going to deal with my foreign earnings on remittance basis for 23-24 tax year but I have in fact not remitted any money from foreign earnings during that tax year, do I need to report my foreign earnings in SA 106? Please kindly advise.

Hi Suma,

When remitting the income you declare it only in the section that it actually relates to. So that could be interest, dividends or rental income to name just a few.
You still need to declare the foreign income as when claiming the arising basis you are liable on your worldwide income whether tax has been deducted abroad or not.

Thank you.

Hi  

BPS WONG ,
  

Any unremitted foreign income or capital gains must be declared in SA109 for the tax year the income or capital gains were not remitted to the UK, in the remittance section on page 2.  They should be declared in box 34 for income and 35 for capital gains, with a detailed breakdown shown in box 40.  If the income or gain is remitted to the UK in a later tax year, then it will be taxable in that later tax year. See : www.gov.uk/government/publications/self-assessment-residence-remittance-basis-etc-sa109 . Thank you .

 
 

Thank you HMRC Administrator for your earlier reply. I moved to the UK last year and became a tax resident in 23-24, I earned GBP 3000 from savings in a bank account in Singapore and the total sum remains in this overseas bank account. If I deal with this earning on a remittance basis for 23-24 and then remit money from this overseas account within 24-25, can I enjoy personal tax allowance in 24-25 to offset the remitted sum if I switch to arising basis in 24-25?. Most grateful for your advice.

Hi, Thank you for your . Apologies, it is still unclear to me. You say: 'When remitting the income you declare it only in the section that it actually relates to'. If i'm filing online on arising basis (no paper filing, no remittance basis), which section does remitted income relate to - 'Foreign Income' section or 'Remitted Foreign Savings' ? Also, you said earlier: 'You only need include in the foreign section when you want to claim a foreign tax credit.' Does this mean that if  I don't want to claim foreign tax credit relief, I don't have to declare foreign capital gains even if i'm filing on arising basis ? Thank you.

Hi Suma Rao,
You wil declare the foreign income on the foreign section of the tax return.
If filing on an arising basis this means you are liable on your worldwide income in the year whether you remit it in the UK or not so this will also include Capital Gains.
Thank you. 
 

Hi BPS WONG,

If you are then resident, yes, you will be due personal allowances to cover your worldwide income on an arising basis.

Thank you

Hi, I have a gain of about GBP 5000 upon termination of an insurance policy in Hong Kong in 2023-24. I chose to deal with foreign income on accrual basis and have not remitted any foreign income in 2023-24. If I adopt arising basis in 2024-25 and remit during that year the nominated sum of GBP 5000 earned in 2023-24, will the starting rate for savings and personal savings allowance applicable in calculating the tax payment for the sum of GBP 5000 in the tax year for 2024-25? Grateful for your advice. BPS

Hi BSP WONG,
Please refer to Income Tax rates and Personal Allowances.
Thank you.