ACTS

Hi HMRC Admin, Thank you for your reply. Noted I have to convert an overseas currency to pounds sterling when declare in self assessment. Coud you please reply to my question (below) for when do I have to declare the capital gain from the foreign currency exchange: From HMRC web site and the forum mentioned that if the foreign currency is exchanged in foreign currency bank account, such debts will not give rise to chargeable gains (or allowable losses). Does it mean when I convert the fund from GBP to USD to GBP in foreign currency bank account, such as HSBC, Llodys, the gain will not be charged for any CGT? Is my understanding correct? Could you please help to advise if I exchange the foreign currency via Interactive brokers (U.K) limited account, is the gain also not charged for CGT? Thank you!

Hi HMRC Admin, Thank you for the explanation on the Deeply discounted securities (DDS). The Bond I hold is: - It's coupon value is 100, maturity value is 100. I bought it from stock exchange at 95 due to the interest rate increased and the price dropped from 100 to 95. This bond pays interest twice a year. In this case, since there is no discount on the coupon value when it was issued, and it is not zero interest bond, this bond is not counted as DDS, is it correct? If above is correct, then Accrued Income Scheme (AIS) is applied. In this case, for below three transactions, are the tax year that I declare the income correct? Transaction 1) In Mar 2023, I bought the bond in stock exchange (the bond pays interest twice a year, in Jan and July respectively). At that time, I paid the accrued interest (interest between Jan to Mar 2023) to the seller and created a negative interest. In this case, I should report this negative interest in tax year 2023/2024 (per AIS that the accrued income would be chargeable in the tax year in which the applicable interest period ends) and declare it in SA106? Transaction 2) In July 2023, I received the interest from the bond. In this case, I should report this interest in tax year 2023/2024 and declare in SA106? Transaction 3) In Oct 2023, I sold the bond and got the accrued interest (interest between July to Oct 2023) from the buyer, and also have a gain from the price difference (I bought at 95 and sold at 98, gain 3). In this case, I should report this accrued interest in tax year 2023/2024 and declare it in SA106, and the declare the gain from price in SA108? Thank you!

Hi HMRC Admin, Thank you for your reply. But it seems that the reply is not for my inquiry. I am looking forward to receiving your reply about my inquiry. Thank you!

Hi HMRC Admin, After studied the example 2 of SAIM4130 - Accrued Income Scheme: calculating accrued income profits and losses: Taxation of accrued income profits and losses. I am not sure whether my understanding is correct. I tried to write what I understand below. Please correct me if it is not correct. Thank you! "For Treasury Bond, when the chargeable income be declared depends on the tax year in which the next interest period ended, even though some of the transactions occurred in last tax year. Above chargeable income mentioned does not only include the interest from any accrued interest or coupon interest from the Treasury Bond, but also the capital gain/loss from any buy or sell transactions of the Treasury Bond. That means if the transaction of the Treasury Bond was on 30 Dec 2022, if it's interest period ended in 15 May 2023, then the gain/loss from this transaction, and also the accrued interest should be declared in 2023-2024 tax year, instead of 2022-2023." Is my understanding correct? Thank you

Hi HMRC Admin, From HMRC Admin 20's reply, the stock exchange that was mentioned is about UK stock exchange? Thank you

Hi HMRC Admin, Referring above Q&A  may I express that below statements are correct? Please correct me if it is not correct, thanks. 1) In Mar 2023, I bought a US bond in open market (the bond pays interest twice a year, in Jan and July respectively). At that time, I paid the accrued interest (interest between Jan to Mar 2023) to the seller and created a negative interest. In this case, I should report this negative interest in tax year 2022/2023. 2) In July 2023, I received the interest from the bond. In this case, I should report this interest in tax year 2023/2024. 3) In Oct 2023, I sold the bond in open market and got the accrued interest (interest between July to Oct 2023) from the buyer. In this case, I should report this accrued interest in tax year 2023/2024. Is my understanding correct? In addition, since it is a foreign income, I should report the above gains (no matter positive or negative amount) in SA106 F2 column B. Is it correct? Many thanks

Hi HMRC Admin, I am confusing after read this chain of thread. It is clear that if the foreign interest or the foreign dividends is more than £2000, fill in the SA106 page F2. Do not need to report them in SA100 page TR3. However, I am confusing on below statements which I summarized from this thread: 1) If the foreign interest and dividends are NOT from UK banks and building societies (for example, they are in a foreign account), then you would complete the SA106 and enter the savings income on page F2, even though the amount is less than £2000. 2) If the foreign interest or the foreign dividends is less than £2000, no matter it is from either UK banks or non-UK banks, they should be reported in SA100 TR3 and do not need to fill in SA106 F2. Could you please advise which statement is correct? I have another question, it is: I refer to Admin 32's reply above, noted that “…An individual with overseas income or gains would do this by completing a Self Assessment Tax Return, no matter how small the amount of overseas income or gains and even if no tax is payable…” My case is that I have foreign dividend net £0.32 and paid £0.09 tax for this foreign dividend. However, in the online form, it does not allow me to fill the decimal place value into neither box 6 and box 7 on SA100 TR3 nor F2 on SA106. In this case, how do I declare this foreign dividend and the tax paid? Many thanks

Hi HMRC Admin, Thank you for your advice. The refund is due to I have paid too much tax from my wages. In this case, what amount should I fill in Box 2 of SA102? 1) The amount under “Tax deducted” in P60? OR 2) The amount under “Tax deducted” in P60 minus the amount of tax refund? Thank you!

Hi HMRC Admin, I have a question on the reply of HMRC Admin 32 above about the declare of the gain of deeply discounted securities (DDS). " you would report the Chargeable Event Gain under 'Other overseas income and gains' in the Foreign pages (SA106) of your self assessment tax return" I found another HMRC Admin replied in another thread that : "if you invest in deeply discounted securities, put the difference between what you paid for the bond and what you redeem or sell it for in box 3 of SA101 (page Ai1)." Therefore, could you please help to clarify which one is correct. Thank you!

Hi HMRC Admin, I got the income tax refund in Aug. Now I am filling the SA102 for tax return. For Box 2 : “UK tax taken off pay in box 1”, which one should I fill in: 1) The amount under “Tax deducted” in P60? OR 2) The amount under “Tax deducted” in P60 minus the amount of tax refund? Thank you! ACTS