Foreign Income

Hi, my mother newly became a UK resident during the 2022/2023 tax year. While she has already retired without any income, she has continued to receive a kind of old age allowance issued by the Hong Kong government because she remains a permanent Hong Kong resident and has satisfied the relevant conditions. The monthly payment is tax free in Hong Kong. Grateful to know whether this allowance received by her in her bank account in Hong Kong is taxable in the UK, and whether she needs to report in the self -assessment return. Thank you.

Hi,

Article 17 of the double taxation agreement between UK and Hong Kong, advises any pension payment arising in Hong Kong, paid to a UK resident, is taxable only in Hong Kong.

2010 Hong Kong-UK DTA

Thank you.

Thank you HMRC. I would like to clarify that the allowance which I mentioned in my question is not a kind of government pension. It is more akin to social security benefits payable to permanent residents in Hong Kong when they meet the age requirement and certain conditions. In that case, is the allowance also free from UK tax. Most grateful for your advice.

Hi, BPS  WONG,
Article 17 of the UK/HK double taxation agreement, advises that social security pensions shall be taxable only in Hong Kong.
If the social security payment is not taxable in HK, it is not taxable in the UK.
Thank you.