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Posted Tue, 16 Apr 2024 12:24:04 GMT by WSL
Hi HRMC Admin, I migrated to UK from China at Jun end 2023 but continued to be employed by same employer in China during Jul to Nov 2023. All salaries were taxed and paid in China. I hope to clarify below issues for finalizing my self-assessment: 1) Do I need to declare any salary received in China before I moved to UK? 2) I worked from home in UK for that China company for around 1 month and then took annual leaves, which were accumulated since 2021, until I left the job in Nov 2023. All salaries were paid in China and taxed by China government as income. During the annual leave period, I did not perform any services for the company. Is it correct I only need to declare the portion of salary covering the period I worked from home in UK and claim credit for any tax paid to China government, instead of whole period from July to November (including annual leave period)? 3) I received RSU shares upon vesting in Oct 2023, after being taxed by China government as income. Subsequently I disposed them in Nov/Dec 2023. Should I report a) gross value of the shares (before netting off China’s income tax) or net value (after net-off of China’s income tax) I received upon vesting as income and claim credit for the tax in China AND b) CGT for any gain on amt over the value at vesting date? Thanks & look forward to your reply
Posted Tue, 23 Apr 2024 10:50:28 GMT by HMRC Admin 32

Article 15 of the UK/china tax treaty related to employment income and advises that employment income earned while in China is taxable in China, but if in the UK when earning the income, then it is taxable in the UK as foreign employment income, provided you spend less than 183 days in any 12 month period in China.
This would be declared on a self assessment tax return.  
Income from RSUs would fall under the guidance below.  


If taxable in the UK, and combined by your employer into your income, you would declare on page SA102, with any tax deducted on SA106, so that you can claim a foreign tax credit.  
If separate from your employment income, you would show the vested shares in the box marked "Tips and other payments not included on your P60".

Thank you.

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