Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Tue, 27 Feb 2024 17:23:04 GMT by uktaxqueries
Hello, I have been an international student for the most part of 2023-24 FY and I am also unemployed. I have no UK income during the year (beyond petty savings interest less then GBP 100 accrued in the UK bank account). However, I have recently encashed my Employees' Provident Fund (EPF) in India (less than GBP 50,000) to help me with some urgent expenses in India and I have not yet remitted these funds to the UK. Now I have a few questions: 1. I believe I automatically qualify for remittance basis. Also, based on HMRC guidance tool, I need not file self assessment return this year because not self employed, no UK income, and no overseas income above GBP 50,000. Is this correct? 2. (a) If I send myself some of the savings / funds from the encashed EPF in India or book accommodation for myself in the UK from these funds in India, would such funds be considered to be remitted foreign income and attract tax in the UK? (b) If yes, would such remittance disqualify me from automatic remittance basis? Or is there a limit to how much I can send myself? (c) Would I then need to file returns? I need these sums to sustain myself in the UK while I begin a job since I will not get paid this tax year. 3. Is there tax chargeable and return to be filed for any cash transfer made to my UK bank account from overseas family / friends to help me with living costs? 3. Do people who subsequently are on PAYE need to file a self assessment return for the period they were unemployed? Thank you
Posted Wed, 28 Feb 2024 12:19:05 GMT by HMRC Admin 10
Article 20 of the UK / India tax treaty (2020 UK-India Synthesised text of the Multilateral Instrument and the 1993 Double Taxation Convention — in force Updated 12 October 2022) confirms that pensions paid to a resident of the UK, are taxable in the UK.  Article 21 relates to students, but does not cover pension payments.  If you choose to claim the remittance basis, you will be required to complete a self assessment tax return to claim the remittance basis and declare the unremitted income.  The guidance at Tax on foreign income, advises that up to £15000 if this income can be set against food, rent, bills and study materials.  Any unremitted income used on things other than living costs and course fees, is taxable in the UK and would need to be declared on the self assessment tax return.  Using an overseas bank or credit card to purchase items other than living costs and course fees, is remitted income and is taxable.
Posted Wed, 28 Feb 2024 15:46:58 GMT by uktaxqueries
Thank you for your response. However, as per the guidance on this, it says non-domiciled residents claiming remittance basis do not need to pay tax on unremitted income (if it is not utilised in or otherwise sent to the UK). Is my understanding accurate. Separate question 2: for cash gifts received from parents for living cost (under GBP 15,000), do those need to be mentioned in the self-assessment return?
Posted Thu, 29 Feb 2024 11:24:09 GMT by HMRC Admin 25
Hi uktaxqueries,
For the remittance basis please refer to further guidance here:
Paying tax on the remittance basis (Self Assessment helpsheet HS264)
Cash gifts do not need to be reported as this is not taxable.
Any interest of dividends that this capital then generates is taxable incomme.
Thank you. 

You must be signed in to post in this forum.