Tax Treatment for employment income before becoming a UK Resident

Hello I moved to the UK in April 2022 and became a tax resident, I wasn't a UK resident before this date. I am eligible for split year tax treatment (case 5) from 18th April 2022 as that is the date I started working in the UK for the first time. Before this I was working overseas till the 13th of April 2022. I have questions as to how the tax treatment is applied for salary paid for the employment overseas till the 13th of April 2022 a) Final salary settlement for overseas employment from 1st April 2022 to 13th April 2022 was credited to my overseas bank account on 29th April 2022 b) Bonus paid for the the employment from 1st Jan 2022 to 13th April 2022 was credited to overseas bank account on 5th April 2023

Hi,

As these relate to employment prior to arrival these are classed as income for the foreign part of the year and you do not include this,

Thank you.

Hello, many thanks for confirming. Just wanted to check on another point related to free shares award. There were awarded to me as part of employment benefits in November 2019 with a vesting date of November 2022. In November 2022 these free shares were sold (on the same date as they vested, so there was no capital gains) and the proceeds were credited to my UK bank account after defuction of tax. The tax has been deducted overseas for these as the free shares were awarded as part of my employment when I was not in the UK. Do I declare this amount in the UK tax return and claim tax credit which has been deducted overseas or will this be treated as income in the foreign part and not included in the in the UK tax return

Hi Merwyn,
As the payment is from your employer, the income should be shown in the employment section if it is included in your P60.
You would then claim credit for the Tax in the foreign section under 'Employment, self-employment and other income which you paid foreign tax on'.
If it's not included in your P60, please include it on the box on the employment page for 'Tips and other payments not included on your P60'.
Thank you.

Hello, many thanks for the reply. The income is not in my P60 as the free shares were awarded as part of my employment before I came to the UK. The shares were awarded in 2019 and vested in 2022, I only became a UK resident in April 2022. Do I still need to include this in the employment page or instead under the Foreign Income section and then claim Foreign tax credit

Hi Merwyn

As the income is not incuded on your P60, you would include the payents in the box 3 on SA102 "Tips and other payments not included on your P60",and again on SA106 in the section on page F6 "Foreign tax paid on employment, self-employment and other income", so that you can claim a foreign tax credit.

Thank you