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Posted Tue, 10 Oct 2023 19:45:17 GMT by
I received a letter from HMRC which stated that I may have received overseas income or gains that I may have to pay tax on. I am a UK tax resident who only has Salary income within the UK, the tax on which is deducted via PAYE . I do have investment assets in another country which were created out of employment income generated in that country before moving to the UK. The income on these assets (capital gains) is within my personal allowance of capital gains in UK and appropriate taxes have been paid in the other country on capital gains of these assets. There has been no remittance of UK income to the other country for creation of these assets. I am not filing any self assessment return in the UK as I was under the impression that having only Salary income within UK below £100,000 does not require filing of tax returns. My questions are as follows: 1. What should be my response to the letter - 4 options available - (i) " I need to bring my tax affairs up to date" (ii) " I believe I have declared all my overseas income and or gains correctly on my tax returns" (iii) I have not declared my overseas income and or gains as they are covered by personal allowances or reliefs" (iv) " I have not declared my overseas income and or gains as they are not liable for UK tax" 2. Do I need to declare my gains from previous years even though they are within my personal allowance? If so, how should I declare these as no tax liability would arise on these in UK? Would this need to be via the worldwide disclosure facility? I tried exploring that option but that seems to be only when a tax liability arises. Would appreciate your response/ support on this. Thanks.
Posted Tue, 17 Oct 2023 08:56:52 GMT by HMRC Admin 32

If you are UK resident and domicile, you are liable to tax on your worldwide income even if you choose not to transfer the income to the UK. You therefore need to determine which of the scenarios applies to you as that is not for HMRC to determine.

Futher guidance is at:

Tax on foreign income

Thank you.

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