Skip to main content

This is a new service – your feedback will help us to improve it.

  • Re: Employment lump sums included in P60

    Hi Jinster768

    The figure on the employment page should match that of your P45 or P60.  
    In the additional information section (SA101)    on page Ai2, box 5, you would declare: 
    " Redundancy, other lump sums and compensation payments – the amount above the £30,000 exemption" and any tax taken off in box 6.  
    With the online tax return, tick 'yes' to "Did you receive any other UK income, for example, employment lump sums, share schemes, life insurance gains?"when tailoring your tax return.  
    This will provide the boxes for redundancy payments.

    Thank you
  • RE: Foreign Capital Gains

    Hi

    Both countries have the right to tax the gains from the disposal of the property.  
    As the property is located in the USA, the double taxation treaty, will give the USA the first rights to tax the gains arising from the disposal of the property, so you will pay tax there.  
    HMRC can also tax the capital gain from the disposal of an overseas property.  
    To avoid being taxed twice on the gains, you would claim a tax credit of up to 100% of the tax paid in the USA, in the foreign sections of the self assessment tax return.  
    This credit will be set against the UK capital gains tax, so that you do not pay the tax twice.  
    SA100 (tax return) SA106 (foreign) SA108 (Capital gains) and any other supplementary pages that are appropriate.  
    The property is a residential property, so the gain should be shown in the section for residential property and will be taxed at the rates of 18% and 28%.  
    You can download the paper supplementary pages at Self Assessment
    If you submit the tax return online, you would tick yes to the foreign sections and capital gains section, as well as those other sections that are appropriate.

    Thank you
  • RE: Capital gains relief on stamp duty

    Hi

    Except where there is specific provision to the contrary, allowable expenditure is restricted to sums for:
    - acquiring the asset
    - creating the asset
    - enhancing its value
    - establishing, preserving or defending title to or rights over the asset - incidental costs of aquisition or disposal                                                  
    The Stamp Duty paid when you acquired your main residential property does not fall into any of these categories, so it would not be an allowable CGT expense.                                                
    Please take a look at CG15160 - Expenditure: categories of allowable expenditure        

    Thank you             
     
  • RE: Can I use my saving abroad for living due to redundancy? And will I be taxed?

    Hi AF

    As long as the savings transferred from your Hong Kong bank to your UK bank account, are not made up of overseas income or gains arising when resident in the UK, then they can be treated as capital and would not be taxable.

    Thank you