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Posted Wed, 27 Apr 2022 12:03:25 GMT by Ian A
Hello This tax year I received a very late payment on earnings relating to a period BEFORE I relocated to and became tax resident In the U.K. The payment was taxed at source i.e. the country where I was resident when the payment was due, which is also the country where the income was earned. Interest on the earnings was also paid to compensate for the delay in payment being made. Interest was also taxed at source. 1. How do I treat / disclose the payment in my tax filing? 2. Given earnings were taxed at source, are there any U.K. taxes due on the delayed payment of earnings, which although received while I was resident in the U.K., relates to earnings made PRIOR to my relocation to and tax residency in the U.K? 3. Given interest was taxed at source, are there any U.K. taxes due on the interest component of the payment as interest was accrued / calculated over a period, some of which being when I was tax resident in the U.K? Thanks.
Posted Tue, 03 May 2022 14:53:04 GMT by HMRC Admin 19

As the income was earned overseas while you were not resident it is not taxable in the UK now that it has been received. This does not have to be included on a tax return.

However, the interest arose while you were resident in the UK and should be included on the foreign page and you can claim a foreign tax credit for the foreign tax paid.

Thank you.

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