SA108

Hello I would like to clarify the information to fill in the SA108 of my friend. - She becomes a UK tax resident in the middle of a tax year, and will apply split year treatment - She disposed some shares in company listed on non-UK Stock Exchange in her "Overseas Part" of the split year - She disposed her main resident property which is outside UK during the "UK Part" of the split year. But the property is sold within 9 months and will apply Private Residence Relief. The questions are: 1/ I read from notes to SA108, if I ONLY sold a non-UK residential property in the year which qualified for PPR, then I DO NOT have to file a SA 108, is that correct? 2/ If (1) is correct, in my friend's case, she also sold listed shares in "Overseas Part" of the Split Year, I have to file a SA 108. I wonder in this SA 108, shall I included both: (a) the gain in sales of non-UK residential property (which PPR will be claimed); and (b) the gain in sales of listed shares in the SA108 return. Am I correct?

Hi,
If you were UK tax resident when an overseas property is disposed of, you are required to report the disposal in a self assessment tax return, as a gain is taxable. If you are not UK tax resident at the time of disposal of overseas assets, such as shares, you do not declare them as they are not taxable in the UK.
Thank you

The tax payer is a UK tax resident; and the tax payer applied split year treatment (incoming case 4). ie there will be an "Overseas Part" and "UK Part", where: "Overseas part" refers to period before she meets the only-home test "UK part" refers to period from she meets the on-home test. What I am pluzzed is that: a) I understand that if there is FOREIGN capital gain but arising from disposal in the "OVERSEAS PART" of the tax year, after using split year treatment, there is no need to report such FOREIGN capital gain in the self-assment return. b) Other than the forign capital gain in the OVERSEAS PART of the tax year mentiioned in paragraph a, there is also OVERSEAS capital gain from sales of residential proerty (for which qualify for applying PPR). I read from notes to Form SA108 that if one ONLY has capital gain on selling of residenital property for which PPR applies, one don't have to filll in SA108 unless there are other capital gains. I am puzzled that does the capital gain mentioned in the paragraph a (ie the FOREIGN capital gain in the OVERSEAS PART) counts as the "other capital gain" that made the tax payer has to fill in a SA108?

Hi,
If you qualify for split year then you only report any foreign income for the UK part of the year:
RDRM12000
If you do not qualify then you will need to report all your foreign income to the UK:
Tax on foreign income
The guidance at RDRM12150  will help you work out if split year treatment applies.  
Thank you.

Thanks for your reply. I think you mean: because no need to report capital gain from the "overseas part" of the split year, AND because the ONLY capital gain in "UK part" is from sales of resident property that qualified for PPR (which is also no need to report), -- therefore the taxpayer NO need to report the capital gain to HMRC. Am I correct?

Hi,
If the disposal value of the asset is over £50,000, then it must be declared on SA108, even if there is no gain.
Thank you.
 

Thanks for your reply but I still not get it. Let me put my question in a simple way, say: I apply split year - incoming case 4 and started to have a UK home on the day when I arrive the UK. Before coming to the UK (ie in my "Overseas Part"), I sold shares with a gain of say GBP 100,000. After I come to the UK (ie in my "UK Part"), I sold my residential property for which I am qualified for Private Resiential Releif. No other capital gains/losses in this year. When I fill in my Self assessment: 1/ For gain in sales of shares of GBP100,000, I don't have to report it since it is sold in my "Overses Part" 2/ For gain in resiential property, I don't have to report it since I will am qualified for Private Resiential Releif. Therefore, I don't have to fill in SA108. Am I correct?

Hi,
Yes, that is correct.
Thank you.