Foreign Income

Hi Judy Cook
You will need to contact us via webchat in order to give personal information so that your case can be looked at -
 . Go to Gov.uk and search 'contact HMRC'.
Then choose Self-Assessment and go to 'Ask HMRC Online'.
Thankyou.

Hello HMRC Team, I am reaching out to seek guidance on personal taxes in the UK. I am an Indian national who recently relocated from China to the UK. I had been working in China for 6 years before moving to the UK on a Tier 2 Visa, which is valid for 5 years. During my time in China, I was entitled to two benefits from my company: • China Social Security. • Swiss Private Pension Upon moving to the UK and joining the same company's UK branch, I have learned that the UK has its own local social security and pension system. As a result, my company has stopped paying for the China Social Security and Swiss Pension Plan. I have been informed that I have to withdraw the complete social security from China & Pension from Swiss which amounts to approximately 50,000 GBP. I am seeking your guidance on following - 1. Will there be any tax exposure in UK if I transfer(withdraw) all my social security from China (Around GBP 25,000) & take it into my personal saving (current) account in UK. I cannot keep this money in China & must withdraw all the pension as I am relocated to UK. 2. Will there be any tax exposure in UK if I withdraw all my private pension from Switzerland (Around GBP 25,000) & take it into my personal saving (current) account in UK. I cannot keep this money in Swiss Pension & must withdraw or transfer all the pension as company is not contributing for it anymore. 3. I have life savings in India. What is the tax exposure if I transfer my savings from India into UK. 4. What is the tax exposure if I sell my house in India & transfer that money to UK to buy a house here. Thank you.

Dear Sir/Madam, I am writing to inquire about receiving foreign income into a UK bank account while residing abroad as a non-UK resident and non-domiciled. I have consulted the "Tax on your UK income if you live abroad" and "Tax on foreign income" guides, and it is my understanding that non-residents are solely liable for tax on their income from UK sources. However, I am still seeking clarity on whether income from non-UK sources, earned through work conducted overseas as a non-UK resident but directed to a UK bank account, necessitates declaration and whether any associated tax obligations apply. It's important to note that I have never used the remittance basis nor have I claimed it before. Thank you for your assistance in clarifying this matter. Best Regards, Albert Stalmed

Good morning. Please could I get some advice and guidance in regards to my situation? I am a veterinary surgeon currently employed part time via PAYE and working ad hoc shifts on a self employed basis in the UK. I therefore file a tax return every year. I have been recently offered to work some ad-hoc locum shifts in Norway. I am aware of the double tax treaty between the UK and Norway, however I could not find any guidance on what steps to follow to get started. My questions are: 1. Should I apply for a tax exemption in Norway in order to pay my tax solely in the UK? 2. What if I stay in Norway more than 183 days in a tax year, but I am registered in the UK for tax purposes (PAYE job, mortgage)? Do I need to report my earnings to the Norwegian tax office, but continue to pay my tax in the UK? 3. Can I continue to pay my taxes in the UK for my UK jobs and pay my taxes in Norway for my self employed earnings in Norway separately or do I always pay my taxes in one country at a time? Would I need to fill a tax return in each country and mention the foreign income from both? I will be very grateful if I could get any clarification on those. Kind regards.

Hi HMRC team, I have two questions related to foreign income tax reporting: - I moved to the UK in May 2022, and received dividend income that exceeds 2000GBP in the tax year ending April 2023. I have remitted some of the income to the UK, but not all. I have been resident in the UK for less than 7 years so I understand that the foreign income needs to be reported but will not be taxed, except for what I have remitted to the UK. Can you please confirm if this is correct? How do I notify HMRC of what was remitted, and so is taxable, and what was not remitted - should I add this under the additional information section in the foreign income section of the self assessment form, or in some other place? - I have also remitted money from a foreign account that is engaged in currency swaps - while these are loan currency swaps and so in some ways unrealised, are any gains (realised or unrealised) from loan currency swaps subject to tax? and what category of tax (capital gains, foreign income, etc) would this fall under?

Hi Chaitanya Rekhi,
1. As this is seen as a refund of contributions and not an actual pension then it is not subject to tax in the UK. 
2. The transfer of the capital will not be taxable but any interest/dividends that the funds then generate willl be taxable income.
3. The transfer of the savings is the same as point 2. if leaving the income abroad, you will need to declare the interest as foreign income.
4. f you sell your house, you could be liable to Capital Gains Tax if it has not been your main residence for the whole period of ownership
  Tax when you sell property Skip to contents of guide Contents
the transfer of the actual capital thereafter is not taxable.
Thank you. 

Hi Albert.Stalmed,

No you dont need to report this.

Thank you.
 

Hi drblue,

Please refer to guidance at Tax on foreign income

Thank you.

Hi,

Please refer to guidance at:  

Remittance basis 2023 (HS264)

Thank you.

Dear HMRC admin, In June 2022, I relocated to the UK after resigning from my job in Hong Kong in May 2022. From June to October 2022, my company provided me with "holiday pay" amounting to over £10,000 as compensation for accrued vacation days. I would like to know if I am required to complete a self-assessment and declare this amount as foreign income. Thank you. Regards 

Name removed admin . 

Hi k2elvin
This income is not taxable in the UK under the double taxation agreement and doesnt need to be declared

Dear HMRC admin, I had resigned my job in Hong Kong in June 2022 and then moved to UK. According to the answers given in this thread, it seems to me that I do not need to declare that Hong Kong salary to UK. However, due to previous misunderstanding, I have declared that I have "foreign income" when I registered self assessment. Today I have received the notice to complete a tax return from HMRC. What should I do to correct the mistake? Do I need to complete the self assessment tax return online even though I do not have any income after moving to UK?

Hi,
Any Hong Kong employment income received before you moved to the UK is not liable to UK tax and should not be declared in your Self Assessment tax return.
However, as you have already registered for Self Assessment, please complete and submit the return, even if it only has 'nil' entries.
If you won't meet any of the Self Assessment (SA) criteria in future years, we will remove you from SA:                                   
Check if you need to send a Self Assessment tax return    
Thank you.

Hello, I worked & lived in Romania for just under 5 years as an employee for a Romanian company and paid taxes there. I also submitted a self-assessment in the UK as a non-resident landlord & did not declare my overseas earnings as they were already taxed in Romania. After returning to the UK, I received my final 2 months holiday pay which (as usual) was taxed in Romania before being transferred to the UK. I have just received a letter from HMRC asking me to complete a 'Certificate of tax position'. Am I correct in believing that my tax position is Statement 4 ('I have not declared my overseas income and/or gains as they are not liable to UK tax'). Many thanks!

Hi Masty,
Under Article 16 of the double taxation treaty, the income from Romania would be taxed there as the work was carried out there, so yes you are correct.
Thank you.