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Posted Mon, 07 Aug 2023 17:06:21 GMT by YM Ying
Hi, [A] Please advise if the following kinds of contractual lump sum receipts overseas after arriving in the UK are treated as my income and therefore to be included in any applicable Self-Assessment: (1) refund of rental deposit from previous landlord - lease expired before arrival in the UK but refund received after arrival in the UK? (2) repayment of loan - lump sum lent to sister before arrival in the UK while repayment, by instalments, after my UK arrival? (3) rebate of property purchase price by agent/broker - before arriving in the UK, separate agreement signed with agent/broker for (a) a purchase price cash rebate and (b) a contribution towards one item of home electrical appliance (subsequently cash payment in lieu), both payable only after property sale completion; property sale completed before arrival in the UK, with 50% of the purchase monies sponsored by me, again with the above rebate and cash payment in lieu received only after arriving in the UK? [B] In converting overseas receipts into GBP in reporting income and gains, while I understand we are free to choose from the average yearly, monthly or spot rate, do we need to consistently apply the same (type of) chosen rate to every single item of income and gains or are we also free to adopt different rates for different items (e.g. average yearly for one item but different average yearly or monthly or spot rate for another item, or e.g. monthly rate for one item in USD but spot rate for another in AUD)? Thank you and regards, 

Name removed admin .
Posted Fri, 11 Aug 2023 09:48:33 GMT by HMRC Admin 25
Hi YM Ying,
This depends on whether you are using the remittance basis or no.
Paying tax on the remittance basis (Self Assessment helpsheet HS264)
For exchange rates please refer to:
Exchange rates from HMRC in CSV and XML format
Thank you. 
Posted Fri, 11 Aug 2023 12:16:46 GMT by YM Ying
Hi Admin 25, Thx for your reply. May I know the answers to my earlier queries if I choose to take the accrual basis (and thus utilising the various allowances available), so that I know if those items are required to be stated as “income” rather than to be ignored as other non-taxable receipts and do not need to be reported? I have studied the exchange rates info by HMRC but would like to know how to apply - is the discretion entirely with the taxpayer for different items ? Or rather for example once “yearly” rate is used for an item then “yearly” rate shall be used for all other items consistently and not eg spot rate for another item at taxpayer’s discretion?
Posted Wed, 16 Aug 2023 08:20:27 GMT by HMRC Admin 25
Hi YM Ying,
In response to your earlier queries:
1. A refunded deposit received from a former landlord is non taxable.
2. Loan repayments (received as a lender) are non taxable, but any interest received would be taxable.
3. As regards the property purchase price rebate, HMRC would require sight of  any relevant contractual documentation before confirming the position.
Finally, as regards exchange rates published by HMRC, these can be used at a taxpayer's discretion.
Thank you. 

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