HMRC Admin 5
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RE: Sale of Overseas Property
Hi Chrisitne Sung
You also need to complete boxes 1-7 on the SA108. You dont need to provide any proof at this time.
2. yes you show this as foreign income for the UK part of the year
3. yes you need to complete SA109 to show split year.
Please note though, a paper return is now classed as late and you will need to file online using 3rd party software to avoid any penalties - Self Assessment commercial software suppliers
Thank you -
RE: Business versus personal mileage
Hi
This would be classed as business.
thank you -
RE: Deferred Stock Awards (DSU)
Hi
Income from share options would fall under Article 14 of the UK/USA DTA – see page 47 of the UK/USA DTA.
In these share option scenarios under Article 14 the UK usually has sole taxing rights and an IRS form W8-BEN would have been completed to confirm this to the IRS.
Any US tax shown on the payslip would usually be a notional figure and not an actual tax deduction so no foreign tax credit relief would be due.
The individual should check this with their employer though to determine the actual position.
If, in the unusual scenario, the USA does have the right to tax some or all of the income per the DTA you will need to review the guidance in the HS263 regarding claiming any FTCR and it may be useful for you to look at DT1925, DT1925A & DT1925B.
Thank you -
RE: Missing records for Income tax and National Insurance
Hi Luke
You would need to contact the employer for the missing information if possible. If your letter was recevied 27 December 2023 the current timesacle for a reply is 4 May 2024.
Thank you
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RE: Are US Health Savings Account reimbursements taxable if used in UK by US UK taxpayers
Hi
As this is money paid in by you to cover medical expenses, any reimbursement is for costs already incurred by you and is not income and therefore not taxable.
Thank you -
RE: Selling Shares result to Capital Loss
Hi al1918 YU
Foreign losses must be reported in order to be used on any UK gains and must be done in writing.
Please refer to guidance at CG25330A - Remittance basis: election for foreign losses to be allowable: TCGA92/S16ZA
Thank you -
Re: Capital gain on selling a residential property located outside UK
Hi
If sold prior to 05/04/23, you will need to report it as the disposal proceeds are over £49200.
You will show that you are claiming private residence relief so that no taxable gain is due. see Capital Gains Tax: what you pay it on, rates and allowances
Thank you -
RE: Dividend and interest payment from non-UK insurance policy
Hi
HMRC cannot comment on future events as legislation may change. however, for current guidlines, please refer to HS321 Gains on foreign life insurance policies (2023)
For any interest/dividends that are received, that could be taken by you, are classed as taxable income and should be declared.
You do not need to report any increase in value of the policy until it is surrendered/matured and is subject to possible income tax rather than capital gains.
Thank you -
RE: Tax on interest earned
Hi
If your other income is up to £17,570 you would receive the the starter rate for tax on savings of up to £5000.
If you other income is above £17,570 then it would be the £1000 personal savings allowance if a basic rate tax payer.
Thank you -
RE: Redundancy payment
Hi Wai -Ming
Yes that is correct, just the employment page.
Thank you