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Posted Sat, 20 Jul 2024 14:47:05 GMT by bwearryyu
Background: a Hong Kong citizen who came to the UK for a full time job in tax year 23/24 but unfortunately got laid off in the same tax year and now back to Hong Kong. Trying to file Self Assessment but then realized there is DTA between HK and the UK (https://www.gov.uk/government/publications/hong-kong-tax-treaties). Since I am a tax resident in both jurisdictions, based on DTA's Article 4.2.(a), I will be considered as resident in Hong Kong (where my permanent home is) This thread also states DTA overrides SRT (https://community.hmrc.gov.uk/customerforums/sa/7ad2c8f2-4abd-ee11-a81c-002248c76c63) My understanding on taxes on different sources are as follows: 1. Tax on income from UK employment: No doubt it would be UK (based on Article 14.1) - handled by PAYE 2. Income from Immovable Property (Article 6) https://community.hmrc.gov.uk/customerforums/ifp/fc694502-eaf8-ed11-a81c-6045bd0e3464?fbclid=IwAR3jk-2eYR_90_2HM25CCr9MPYcgbPIVp9-ZNbpMVgIqH5L8VTj-DPcCeR0 https://community.hmrc.gov.uk/customerforums/ifp/082da087-f1b0-ee11-a81c-002248c61b95 The rental income is only taxable in/by Hong Kong 3. Interest (Article 11) Wording is similar to Article 6 so I presume it is also only taxable in Hong Kong. 4. Capital Gains (from trading stocks) I believe Article 13.5 refers to this. Or maybe Article 20.1. Both state that such income/gains only taxable by the resident's Contracting Party (in my case that is Hong Kong) I hope my understanding is correct. And if so, - does that mean even if I am taxed on the arising basis (I have an option to use remittance basis since none is remitted into the UK), my overseas (Hong Kong) income will not be subject to UK tax? And If this is correct, - do I still need to file Self Assessment and report the amounts? Some threads (or similar threads) above suggest declaration is not necessary.
Posted Wed, 24 Jul 2024 08:01:00 GMT by HMRC Admin 21 Response
Hi bwearryyu,
If not UK resident, you will only declare UK income on the tax return. you will need to include the residence page of the return to show this and as resident in Hong Kong, no personal allowances are due.
Thank you.

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