Foreign income declaration reporting

Dear HMRC I have foreign income to declare from a 401K. The funds were received in my UK bank account in March 2021-22 tax year. My circumstances have changed such that it may now be beneficial to report part of the payment in the 2022-23 tax year. Question – is it acceptable to split part of that foreign income over two tax years, or must it be declared in the tax year that the funds were actually received in the UK? thanks

Hi,

An individual, who is resident and domiciled, or deemed domiciled in the UK, will pay tax on the 'arising' basis. If the foreign income arrived in your UK bank account in March 2022, then this income is taxable in 2021 to 22 tax year only, as the income was generated in that tax year.

Thank you.

Thanks, that's clear