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Posted Thu, 21 Dec 2023 11:08:20 GMT by
Dear HMRC Admin I moved to the UK on 17 June 2022 with a BNO visa from Hong Kong to start a new life. I would like to seek your advice on the overseas income from Hong Kong. I resigned from my job on 7 June 2022, and my previous employer paid my unused annual leave by 5 instalments until 28 September. The total amount received after 17 June 2022 (the date of my arrival in the UK) is HK$ 162,588 equivalent to approx. GBP 16,200. The payment is directly paid by my previous employer to my bank account in Hong Kong. And I didn’t need to report or render any service to my previous employer after the date of my resignation on 7 June 2022. This unused annual leave payment is fully subjected to Hong Kong Tax. As I arrived in the UK on 17 June 2022, I will become a tax resident of the UK in FY 2022/23. I applied for the unique tax number by the deadline in Oct. Under my situation, I would like to confirm the below uncertain issue and make the appropriate response on the tax responsibilities to the UK. 1. The unused annual leave income of approx. GBP 16,200 after I arrived in the UK should be subject to UK income tax? 2. If the payment should not be subjected to UK income tax, what should I do when I receive the tax return from HMRC. Please let me know if you need any further information.
Posted Thu, 21 Dec 2023 17:35:54 GMT by Rick Chan
I have got the same situation as u , I also wanna find out do I need to pay the tax and NI for this unused annual leave income.
Posted Tue, 02 Jan 2024 12:21:32 GMT by HMRC Admin 21
Hi Pat,
Under the terms of the tax treaty with Hong Kong, as the payment refers to 'work' carried out there, it is only taxable there and you dont declare it in the UK.
Posted Wed, 03 Jan 2024 16:28:12 GMT by Rick Chan
Hi HMRC Admin21 For the Pat's situation, Is it mean that he even got a money for his unused annual leave in 2022/2023, he don't need declare it in the UK? even he is a tax resident of the UK in 2022/2023?
Posted Mon, 08 Jan 2024 12:28:51 GMT by HMRC Admin 10
Hi
If you were paid for work you carried out in Hong Kong, while resident in Hong Kong, at a time when you were resident in the UK, then this income is taxable in Hong Kong and not in the UK.
Posted Tue, 09 Jan 2024 14:34:47 GMT by Rick Chan
Hi HMRC Admin Is it the definition of "work" does not include annual leave? so I got the payment for my unused annual leave after I arrived in UK with BNO visa(2022/2023), even I'm a tax resident of the UK in Full Year 2022/2023, This income is not taxable in the UK?
Posted Tue, 16 Jan 2024 08:45:28 GMT by HMRC Admin 19
Hi,

Under the terms of the double taxation treaty with Hong Kong, this income is only taxable in Hong Kong and does not need to be declared in the UK.

Thank you.

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