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  • Remaining payments from overseas employer

    Hi I moved from Hong Kong to UK on 1 May 2021 and became a tax resident since then. My employer in Hong Kong paid me my remaining annual leave as salary from 1 May 2021 to 15 Jun 2021. Do I need to register a PAYE employer code for my Hong Kong employer (there is no UK presence) and report the overseas income in 2021-2022 tax return via self assessment SA102? Or would this be treated as payments originated from previous employment so no need to be reported? Thanks and regards
  • Overseas insurance policy with payout before maturity

    Hi I had set up an insurance policy in Hong Kong before I became a UK tax resident in Jan 2022. I'd been paying £500 annual premium from 2002 to 2022, and the policy will pay out the cash value for 4 years every May from 2020-2023 and then mature in May 2023. Is it correct that I should report the surplus upon the maturity of the policy? i.e., Cost = £500 * 21 = £10500 Payout received in May 2020 = £3000 Payout received in May 2021 = £3000 Payout received in May 2022 = £3000 (not yet report in 2022-2023 tax return as gain is uncertain; I have not been receiving any notification of gains apart from the annual statements) Payout received in May 2023 = £3300 (to report surplus in 2023-2024 tax return), with surplus = £3000+£3000+£3000+£3300 - £10500 = £1800 And should I be reporting the surplus as overseas capital gain or overseas income? Thanks and regards
  • RE: Offshore reporting and non-reporting funds

    Thanks for your reply. For example, if I'm holding 4 funds: Fund A (non-reporting fund): cost base is £100, there is a distribution of £1 in the tax year and I sold it at £90. Fund B (non-reporting fund): cost base is £100, there is a distribution of £2 in the tax year and I sold it at £101. Fund C (reporting fund): cost base is £100, there is a distribution of £3 in the tax year and I sold it at £70. Fund D (transparent fund): cost base is £100, there is a distribution of £1 in the tax year and I sold it at £120. Is it correct that I should report as follows? (£90-£100) + £1 [from Fund A] + (£101-£100) + £2 [from Fund B] + £3 [from Fund C] + £1 [from Fund D] = -£2 (which is a net loss) as overseas income and (£70-£100) [from Fund C] + (£120-£100) [from Fund D] = -£10 (which is a net loss) as capital gain/loss Thanks again! PS: For transparent fund, I'm referring to "Whilst this means that such funds will have to monitor their underlying investments, it allows them to avoid the need to apply for reporting fund status. UK investors will be charged capital gains tax or corporation tax on a capital gain arising, rather than incurring an offshore income gain, provided the fund has complied with regulation 29(2))." as stated in https://www.gov.uk/hmrc-internal-manuals/investment-funds/ifm13470
  • Overseas Pension Funds

    Hi I'm currently holding some mandatory provident funds in Hong Kong (from my previous employments before I become a UK tax resident). Understand that pension funds from previous employments are not subject to tax when I redeem the funds. How about transactions made on those pension/provident funds, e.g., if I do some reallocation of my holdings (switching among them or to new funds), do I need to consider and report potential capital gain tax? Thanks and regards!
  • Offshore reporting and non-reporting funds

    Hi I'm currently holding some offshore mutual fund investments in Hong Kong - some are reporting funds, some are non-reporting funds and some are special category transparent funds. With reference to: https://www.gov.uk/hmrc-internal-manuals/investment-funds/ifm13100 For non-reporting funds, is it correct that: - fund distributions (in cash or reinvested) should be treated as untaxed overseas income; - profit/loss when redeeming these non-reporting funds should also be treated as untaxed overseas income ? What if the total amount of transaction profit/loss + distributions is negative for the tax year? Should I report the negative total amount as untaxed overseas income? For reporting funds and special category transparent funds, is it correct that: - fund distributions should be treated as untaxed overseas income - profit/loss when redeeming these reporting funds should be treated as investment capital gain/loss ? Many thanks!