Hong Kong resident and UK savings interest

Hi HRMC. I come from Hong Kong. I am currently living in the UK but I am not a UK resident based on the SRT. I have incomes that make me need to file a self assessment. I also have UK savings interest. I read the double tax agreement between UK and Hong Kong which suggests that UK interest income earned by a HK resident is only chargeable in HK, not in the UK. Do I still need to report my UK savings interest in my self assessment? If I do, it treats it as disregarded income which makes me lose my personal allowance. Thank you.

Hi,
If the statutory residence test confirms that you are not UK tax resident for the whole tax year, you only declare your UK income for the whole tax year and your worldwide income, from the date you arrived in the UK.  
Article 11 of the tax treay applies to interest and states 'may be' taxed in that other party. That phrase allows both countries to tax the interest. You would claim a credit in Hong Kong for any tax deducted against your UK interest.
Hong Kong: tax treaties
Thank you.

Hi HMRC, Thanks. But clause 2 under article 11 states: "...but if the beneficial owner of the interest is a resident of the other Contracting Party and at least one of the conditions mentioned in paragraph 3 of this Article is met, that interest shall be taxable only in that other Party. " 3aii then states one of the condition is "(ii) an individual;". So, in this case, I am not a UK resident and the beneficial owner (me) is an individual. Wouldn't this mean that interest shall be taxable only in Hong Kong? And if it it is only taxable in Hong Kong, do I still need to report it in my self assessment? Thank you.

Hi, This forum is for general queries only and is intended to help you self-serve. We are unable to provide specific advice tailored to individual circumstances. As such, you will report based on your interpretation of the treaty.
Thank you.
 

My wife and myself are both sole traders providing different goods/ services to clients. At the beginning of financial year 24/25, we started to do regular forex trading for an extra source of income. We have the following questions regarding the above development: 1. The brokerage account is a joint account owned by my wife and myself. Should we register for a partnership or we simply split the income/ loss and add a new trade in our existing self-assessment? 2. The brokerage account was previously used for occasional trading use of long term investment. We only began our regular trading habit in April 2024, we wonder if we have to register for the partnership, is it ok if we regard such date as the date when we start our partnership business? Thank you very much.

Can HMRC moderator point to someone/organization who can clarify the UK/HK tax treaty with authority? I have consulted two tax advisers but none of them have the confidence to draw a conclusion from the treaty. For example, the treaty says the following on director's income. (I picked it because it is the shortest) "Directors’ fees and other similar payments derived by a resident of a Contracting Party [UK] in his capacity as a member of the board of directors of a company which is a resident of the other Contracting Party [HK] may be taxed in that other Party[HK]." It says the director's fee received by a UK tax resident from a company in Hong Kong may be taxed in Hong Kong. But it contains nothing to say if it will be taxed in the UK or not. This leaves a lot of room for interpretation. Can you help us clarify?

Hi ,
 

1. That is a personal choice   2. Depends on answer 1 . Thank you .

Hi ,
 

If you are UK resident and domiciled you are taxable on your worldwide income unless the DTA states a particular souce may only be taxed in the country it arises . Thank you .