Skinny

Hi, There is another related question. I received monthly interest (HKD) from my HK bank account. I need to fill in the self assessment tax return for this income in GBP. There are two ways to calculate the equilvalent GBP by: 1. total twelve month interest x Average foreign exchange rates (FX) are published on 31st March 2024 2. Apr 2023 HKD interest x Apr FX rate + May 2023 HKD interest x May FX rate + Jun 2023 HKD interest x Jun FX rate..... Which method should I use to calculate the amount in filling the corresponding tax return form? Thank you.

Hi, My parents and I are BNO (VISA) holders from Hong Kong. We have been living in UK for more than one year and are taxpayer. My parents are retired many years ago and just sold their Hong Kong property and want to give all the proceeds (around £360,000) as a gift by bank transfer to me. I know that they have to pay the capital gain tax. Now I plan to buy a flat in UK and live with them. I have never owned a property in UK and in other country/area. 1. As I receive this gift, whether I need to pay any income tax or capital gain tax or others tax for this？ 2. At what rate it will be taxed for this gift if it needs to be taxed? 3. Whether the gift is needed to be declared in my tax return? 4. I am a BNO holder. Am I eligible to claim the first-time buyers' relief related to the stamp duty when I buy a residential property in UK? Thank you.

Dear HMRC team, I have another question about my mother. My mother has had a Cash value life insurance for a long time in Hong kong. She has terminated the insurance in Aug last year, and get back the cash surrender value in HKD. I know that she needs to declare this value on SA106 as foreign chargeable event gains. 1. Should I fill in the value in box 43? 2. We got no "chargeable event certificate" in Hong Kong or UK. Should I mention this in the SA100 TR7? In addition, 3. What is the meaning of "Number of Year" in box 44? Is it the number of years between the buying of the insurance and the surrender year? What is the meaning of "tax treated as paid" in box 45 blank? Thank you for your attention.

Hi, Following the disposal of the my major living property in HK described above, 1. There is no capital gain tax in HK. Therefore I only need to declare the profit should declare the profit as capital gain in SA108? 2. In order to claim the private residence relief, I need to show this clearly in my calculation of the profit in the blank box 54 in SA108? Thank you.

Hi, Thanks for your answer. I have further questions. 1. My overseas property was bought at 29/4/1993 before immigrated to UK. There are 4 excel file with different titles in the link https://webarchive.nationalarchives.gov.uk/ukgwa/20141203183220/http://www.hmrc.gov.uk/exrate/index.htm: Named "31.03.93", "Spot rate 31.03.93", "31.12.93", or "Spot rate 31.12.93". Which rate should I use to calculate the equivalent GBP to calculate the cost of purchase? 2. I do not have to report or pay the CGT within 30 days or 60 days as it is not a UK property sale and 3. I report on my self-assessment tax return for the financial year 2024/25 and pay the tax according to that. Are my understandings correct? Thank you very much

Hi, 1. Refer to the above FX rate from 1 Jan 1989 to 31 Mar 2014, My overseas property was bought at 29/4/1993 before immigrated to UK. Which rate should I use to calculate the equivalent GBP to calculate the cost of purchase? Named "31.03.93", "Spot rate 31.03.93", "31.12.93", or "Spot rate 31.12.93"? 2. Now I am living in UK and my overseas property was sold. Suppose the selling price is HKD3,000,000. The complete deal date will be on 10 Apr 2024. But the buyer will pay me by three payments. He has paid two funds within this financial year (2023/24). At 1/2/2024, he paid HKD40000. Second payment was HKD60000 on 17/2/2024. And he will pay the final remaining payment on 9 Apr 2024. There are two questions raised. a) I know from your answer above that I have to do the FX to change the HKD to GBP. I have to use Feb 2024 monthly exchange rate to calculate the GBP? b) In reporting the capital gain tax, the first and second payment are in financial year 2023/24, But the final remaining payment will be on 9 Apr 2024, which is out of the 2023/24 financial year. How should I deal with this? Sum up all these as the selling price and report in 2023/24? or report the sum in 2024/25? Or treat it in other way? Thank you.

Hi, Thank you for your reply. However, there is no file for 1993 FX. Skinny

Thanks for your reply. I would like to know where I can find the FX rate for 1993. Using average rate? daily rate?

Hi, Thanks you for all the above replies. Further questions. 1.Since the foreign interest is in foreign currency, i need to change that to GBP. The declared amount (GBP) is as follows: total interest multiply the yearly average exchange rate. Am I right? 2. I know that the gain from selling of overseas property is also needed to declare and regard as capital gain. There is also an foreign exchange question I would like to clarify. Suppose I bought a overseas property in 1993 before immigrated to UK. Now I am living in UK and will sell the overseas property. I suppose that the cost of the property in 1993 is HKD100,000. Now I sell it at HKD400,000. If I want to declare this for taxation, there are two ways to calculate the profit in GBP. Calculation 1: change the 1993 HKD100,000 to GBP at the rate in 1993, and then change the present price HKD400,000 to GBP at present rate, then do the subtraction to calculate the GBP profit. Calculation 2: Do the subtraction first in HKD, then the profit is HKD300,000. Then change this HKD300,000 to GBP at present exchange rate and declare this amount for taxation. I would like to clarify which calculation method I should use for the tax declaration. Or both also ok?

Hi, continue to follow the above question. If I choose the remittance basis for taxation, and my only income in the financial year is the overseas interest income, do I need to declare the overseas interest income if this interest is not remitted to UK yet in the financial year?