Foreign income or UK income

Hi HMRC Admin, Could you please help to advise that are the saving interest and the bond interest from HSBC Expat account and Interactive Brokers (U.K.) Limited account treated as foreign income? or UK income? Thanks ACTS

Hi ACTS,

This would count as foreign income.

Thank you.

 

Hi HMRC Admin, Thank you for your reply. I have one more question: HMRC web site and the forum mentioned that if the foreign currency is exchanged in foreign currency bank account, such debts will not give rise to chargeable gains (or allowable losses). Does it mean when I convert the fund from GBP to USD to GBP in foreign currency bank account, such as HSBC, Llodys, the gain will not be charged for any CGT? Is my understanding correct? Could you please help to advise if I exchange the foreign currency in Interactive broker account, is the gain also not charged for CGT? Thank you! ACTS

Hi ACTS,
Please refer to:
CG78300P - Capital Gains Manual: Chattels and other assets: Foreign currency: contents
Thank you. 

Hi HMRC Admin, Thank you for your reply. I have read CG78300P and all the sections under CG78300P. However, I could not find the suitable information to solve my question above. It is much appreciated if you could give more advice on my question. Many thanks ACTS

Hi,

For self assessment purposes, HMRC does not impose on an individual, how they should convert an overseas currency to pounds sterling. For your convenience, you can use the the various customs and vat table of exchange rates, which can be found below or from other sources, such as the London stock exchange or the rates published in a newspaper etc.

Exchange rates from HMRC in CSV and XML format

Thank you.

Hello HMRC Admin. I have a few queries which I am struggling with. Pls help me 1. I have been living in the UK for the last 12 years and I became UK Citizen in June 22. 2. My parents from India made a gift to me in the year 2020 to support me in buying an accommodation. However, due to covid situation, I couldn't buy anything and i sent the funds back to my NRE account in India. 3. My NRE account has earned some Interest income for the last 3 years. I had no idea about the Taxation liability in UK on this interest income. Being NRE account, the interest is not taxed in India either. I want to make it good now after HMRC informed me. My questions are as follows: A) Do i pay tax on this interest income starting from the year i became UK citizen or since beginning ? b) While sending the funds of my parents back to India, i had sent my own funds too along with it. But my parents' funds and my own funds both remained in my NRE account. So do i pay tax on the interest income on the entire funds or only on my own funds c) what is the remittance basis? do i get any tax rebate on this interest income Pls help me so that i make it good and remain a good UK citizen. Thanks

Hi,

This depends on whether you are claiming the remittance basis or not. If the account is in your name only, you would be liable for all the interest received. You can see further guidance here: 

Paying tax on the remittance basis (Self Assessment helpsheet HS264)

Thank you.

Hi HMRC Admin, Thank you for your reply. Noted I have to convert an overseas currency to pounds sterling when declare in self assessment. Coud you please reply to my question (below) for when do I have to declare the capital gain from the foreign currency exchange: From HMRC web site and the forum mentioned that if the foreign currency is exchanged in foreign currency bank account, such debts will not give rise to chargeable gains (or allowable losses). Does it mean when I convert the fund from GBP to USD to GBP in foreign currency bank account, such as HSBC, Llodys, the gain will not be charged for any CGT? Is my understanding correct? Could you please help to advise if I exchange the foreign currency via Interactive brokers (U.K) limited account, is the gain also not charged for CGT? Thank you!

Hi ACTS,
HMRC considers foreign currency to be an asset and any gain from the exchange of currency is chargeable to capital gains.  
If your total gain exceeds the annual exempt allowance, you have until 31 December after the end of the tax year to declare the gain using the realtime transaction service at
Report and pay your Capital Gains Tax.  
Reporting after 31 December must be in a self assessment tax return, which should be in the possession of HMRC before 31 January, when any outstanding tax should also be paid.
Thank you.
 

I am tax-resident in France. I have an investment portfolio in the UK that is managed by a UK-based wealth manager. It contains both UK and non-UK company shares, bonds, etc. Should I report dividends and interest that are received from the non-UK companies (e.g. Apple) as: 1) Foreign interest income and dividends (using the Foreign pages if dividends are more than £2k) 2) As UK interest income and dividends) 3) Not report it to HMRC, since I am non-UK resident, therefore not liable for tax on foreign income, but instead report it to the French tax authorities Thank you.

Hi,
As not UK resdient you would only need to consider reporting any UK income.
Tax on your UK income if you live abroad
Thank you.