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Posted Tue, 28 Jun 2022 15:15:22 GMT by oscaryy
money received after opening an bank account or after a foreign currency exchange, is it taxable?
Posted Wed, 29 Jun 2022 15:55:35 GMT by HMRC Admin 10
Hi
If the money received is interest, you may be liable to income tax.
Guidance is available at :
Tax on savings interest
Thankyou.
Regards.
Posted Thu, 30 Jun 2022 12:50:36 GMT by oscaryy
Hi, good day to you. I must apologize for the vague question. I received a one-off money after a foreign currency exchange. It was a rebate after the exchange was done. Is it taxable? And, I also received another one-off money after opening a bank account. It was a bank refund. Is it taxable? Thank you very much.
Posted Fri, 01 Jul 2022 11:45:41 GMT by HMRC Admin 28
Hi,

There would be no tax due on these payments.

Thank you.
Posted Fri, 01 Jul 2022 12:27:16 GMT by oscaryy
Hi, Good day to you. My wife got a one-off compensation in a court order from the defendant. It was because the defendant breached a buy and sale contract of a property. The case happened in China about 3 years ago and my wife received the compensation last month. My wife became UK tax resident since 06 Apr2021. Is It taxable? Thank you very much.
Posted Mon, 04 Jul 2022 10:58:16 GMT by HMRC Admin 24
Hi,

We will need to have a look at the actual wording of the settlement agreement to determine whether or not the compensation payment is taxable.

Please therefore send a copy of the settlement agreement (with a covering letter) to the address provided below.

Income Tax: general enquiries            

Thank you.     
Posted Wed, 13 Jul 2022 17:30:27 GMT by oscaryy
Hi, Good day to you. It is a follow up question. My wife is retired with income from saving interest, dividend, and rental, and pension. We understand that the settlement compensation may be taxable (capital gain tax), because it was a breach of sale and buy contract of a property. The court made the order on 16 July2021 and asked the defendant to pay within 15 days, i.e., on or before 31July2021. However, the defendant paid the settlement compensation in July 2022. My questions are: 1) what date should I report the gain? 16 July2021 or 31 July 2021 or July 2022 ? 2) if the sum of money is less than GBP12300, the capital gain allowance, should she still needs to complete the form SA108? Thank you very much. Best regards.
Posted Thu, 14 Jul 2022 14:04:17 GMT by HMRC Admin 26
Hi,


As previously advised, we would need to see the settlement agreement to confirm the income is in fact taxable, to then say what year it should be included.

Thank you.

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