HMRC Admin 2
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RE: Saving account interest from Indian bank account(NRE)
Hi,
If the tax deducted from the interest paid, was repaid. It means that when you declare the interest in your Self Assessment tax return, there is no foreign tax credit relief to claim and no foreign tax was paid.
Thank you. -
RE: Treatment of lumpsum received from India Public Provident Fund (PPF)
Hi,
There is no relief for 'trivial commutation lump sum' for payments from an Indian pension. This means that the lump sum is taxable in India.
It is also taxable in the UK. In the UK, the first 25% of the lump sum is tax free, with the remainder being taxable.
You would declare the taxable element on a Self Assessment tax return and claim tax relief for any tax paid in India on the lump sum.
Thank you. -
RE: When to send an Individual DT
Hi,
You will need to wait until you are in receipt of your annuity and then complete the DT individual UK/France, which you can find here:
Double Taxation: UK-France (SI 2009 Number 226) (Form France-Individual)
You should complete the form and send it to the French tax authorities for validation.
The French authorities will sign and stamp the form to confirm that you are resident in France for tax purposes and your annuity is taxable there. They will return the form to you, at which point you send it to HMRC at the address on the form.
Once the validated form is processed, we can repay any tax deducted by the annuity provider.
Thank you. -
RE: Income from foreign NRE account
Hi,
Double Taxation Avoidance Agreement (DTAA) provides for credit to be given for tax`spared` (not paid) in India under the provisions of Indian law set out in Article 24 (4).
This tax ‘spared’ relief is restricted to a period of 10 years from first exercised, see Article 24 (5).
Credit for `tax spared’ is limited to the amount of tax which would otherwise have been paid under the terms of the agreement. As per UK India DTAA interest can be taxed maximum @ 15% Article 12 (2). Thus, relief restricted to 15%.
This means yes you can claim credit even though the tax has not been paid. You can claim this for previous years although you can only go back to 2019.
Thank you. -
RE: Cash gift from parents outside UK
Hi,
There are no Income Tax implications on the receipt of a cash gift unless the income generates interest or dividends. These would then potentially be subject to tax.
Tax on savings interest
Tax on dividends.
You may wish to contact the Inheritance Tax team regarding any Inheritance Tax implications.
How Inheritance Tax works: thresholds, rules and allowances
Inheritance Tax: general enquiries
Thank you. -
RE: Reimbursed expenses
Hi,
You would need to declare the whole amount paid to you as turnover and claim expenses for travel, subject to the rules on travel expenses.
Expenses if you're self-employed
Thank you. -
RE: BNO
Hi NewJoiner,
This will be based on your actual tax residence and is covered in the link provided.
Tax on foreign income
Thank you. -
RE: UK Tax on Australian Superannuation
Hi Tax Payer,
This would depend on the criteria outlined on the guidance you refer to at the step 'Application of Step 2'.
If all the conditions are not met, then no.
Thank you. -
RE: Reporting savings interest
Hi,
Yes, the banks will notify HMRC of the annual interest received and your records will be updated based on this.
Any charges will be notified by way of a calculation and tax code change.
Thank you. -
RE: Gift tax for cash gift from overseas
Hi,
There are no Income Tax implications on the receipt of a cash gift unless the income generates interest or dividends. These would then potentially be subject to tax.
Tax on savings interest
Tax on dividends
Thank you.