Split Year Treatment: UK part

(1) Hi, I moved from Hong Kong to the UK in August 2021 and have become UK resident for the tax year 2021-22 after residing in the UK for 183 days. It looks like that I qualify for split year treatment and need to report foreign income only for the UK part of the year. My question is, what is the date from which the UK part of the year begins? Should it be the date of my landing in the UK? Or should it be a date 183 days following the date of landing? (2) In the Self Assessment tax return, do I need to include all bank interests in the tax year, even the total amount is minimal and less than GBP50? (3) I got income from my previous employer in Hong Kong for two more months after I moved to the UK. I would like to be taxed on remittance basis and will fill in the SA109 form. Do I also need to fill in the "Employment" form (SA102) or the "Foreign" form (SA106)? Or both forms are needed? Thank you.

Hi,
 

If you qualify for split year then you only report any foreign income for the UK part of the year : RDRM12000 - Residence: The SRT: Split year treatment: Contents  . 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 at www.gov.uk will help you work out if split year treatment applies . Thank you.

Thank you for your reply. Do I need to include foreign bank interests in the Self Assessment tax return, even the total amount is minimal and less than GBP50? For the income from my previous employer in Hong Kong after I moved to the UK, should I fill in the "Employment" form (SA102) or the "Foreign" form (SA106)? Or both forms are needed?

Hi,

Yes, you still need to include the interest.

If the employment income relates to duties that were carried out in Hong Kong then you do not include them here as per the double taxation agreement, this income is only taxable in Hong Kong.

If paid for duties carried out in the UK then yes you need to declare it on the SA102 and SA106.

Thank you.

Can you please clarify the following scenario: Individual is currently living in a country that has DTA with the UK. They are receiving an income from their personal UK pension. The terms of the DTA allow the pension income to be paid gross and taxed in current country. If the person moves to the UK , qualified for Split year tax treatment, is all of the UK pension income received during that year taxable or only the part received post UK residence?

Hi Neil Chadwick,

If you qualify for split year then you only report any foreign income for the UK part of the year, please see - RDRM12000 - Residence: The SRT: Split year treatment: Contents

If you do not qualify then you will need to report all your foreign income to the UK, you can find guidance here - Tax on foreign income

The guidance in RDRM12150 at www.gov.uk will help you work out if split year treatment applies. 

Thank you.

Thank you for your answer. To be 100% clear , you are saying that any UK income received in the foreign part of the year is not taxable in the UK part of the year?

Hi Neil Chadwick,

To confirm no, 
Its only foreign income for the non UK part of the year you do not declare. 
Thank you 

 

Thank you for clearing that up.