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Posted Mon, 15 Apr 2024 08:26:05 GMT by Whol Petg
Hi I have following question about Arising Basis(foreign income from Hong Kong) for bonus. Q1. For arising basis(foreign income), the arising day is my bank account receive income day or the income declaration day? For example, bonus declaration day is 20 Feb 2023. And the bonus is transfer to my bank account on 20 May 2023. Q2. For the above case, it should report on 2022/2023or 2023/2024 tax return? Q3. What is the definition of Arising? Thanks
Posted Mon, 22 Apr 2024 15:50:34 GMT by HMRC Admin 19

The guidance below describes the 'arising basis' as "most individuals who are resident in the UK are taxable on the arising basis and pay tax on their worldwide income and gains. So, on the arising basis, the foreign income of UK residents is charged to tax in the year in which it arises overseas. For example, an employee is taxed on the full amount of earnings from a foreign employment for the tax year. Likewise, any capital gains are subject to UK tax in the tax year in which the gain accrues. In most cases that is the year in which the asset is disposed of".  

RDRM31030 - Remittance Basis: Introduction to the Remittance Basis: Overview of the Remittance Basis regime: What is the Remittance Basis?

Thank you.

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