Definition of "UK-sourced income" as a non resident after moving to the US

Hello, I was self-employed in the UK in 2021-2022 and for part of 2022-2023. I moved to the US at the start of the 22/23 tax year and thus I am non-resident for 22/23. I need help understanding what part of my 22/23 income needs to be declared in my self-assessment. For example, does "UK-sourced income" include my revenue as self-employed even if the contracting company was a foreign company? If so, does the cash basis system apply? That is, should I report only what was paid to me while I was in the UK? or everything referring to self-employment regardless of my residence when I was paid? Furthermore, I paid US taxes on the aforementioned income. Under the UK-US tax agreement does that mean I should not be taxed in the UK? or that I need to fill out the tax relief section? Thank you and best regards.

Hi,

If you qualify for split year then you only report any foreign income for the UK part of the year. You can see guidance here:

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. You can see more information here:

Tax on foreign income

The following guidance 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, Thank you for replying, I've been trying to understand RDRM but I think it doesnt apply to my case because I was not resident in the UK. Could you point me to a definition of UK-sourced income? I need to understand what part of my income while self employed in the UK for a foreign country needs to be declared. Thank you and best regards.

Hi
The term 'source of income' describes where income arises or where it is derived from.
Income arising in the UK has a UK source and income arising outside the UK has a non-UK source (or foreign source).
Thankyou.

Hi, Thank you, I understand the literal meaning but don't know how to apply it. I was self-employed in the UK but had clients in a foreign country. Is this arising in the UK or outside? Best regards

Hi Pedro,

This is in the UK for the period you were here.

Thank you.

I am a UK resident taxpayer but not domiciled in the UK. I have an investment fund in the Channel Islands which is managed by a Channel Island bank. The income received by the bank from this fund comprises dividend income from both overseas and UK companies. None of the income is remitted to the UK. Is all the income derived from the fund treated as overseas income for UK tax purposes?

Hi nondom23 smith,
Yes at is is based in the Channel Islands, this is foreign income.
Thank you.