YL Edison

Hi HMRC, I am buying a retail bond issued by a public body overseas. The bond will be dividing money to me once 3 months with a fixed amount until mature. I am a basic rate tax resident and I understand that I should report the dividng money to you. May I know: (1) what type of tax it is? (2) any allowance for the tax in (1)? (3) which form I need to use? (4) please send methe link if there is any guideline(s). Many thanks. YL

Hello, I have joined some deposit-like saving from a bank outside UK, in which i will earn flight milage instead of interest, after i deposited my money for a year. May i know whether i need to pay any tax for the milage earned, please? I am a tax resident in the financial year. Thanks.

Dear Sir/Madam, I migrated to UK on 13/9/2022, rented a house for a year on 14/9/2022, and started to work from 18/9/2022. I continue my work until today and have not left UK until 1/5/2023, may I know when will be the start date of my split year treatment for year 2022-23? I have not been to UK before 13/9/2022. Thanks. Best Regards, 

 

Thanks for your reply and I understand that in both the above scenarios, the interest will be taxed on 24/25 tax year. Last two questions, please: I understand that I have an allowance on interest gained if I am a basic rate tax player. If the interest gained in the tax year is less than that of the allowance, do I still need to report to HMRC? If yes, which form I need to fill in? Thanks.

Just a follow up question. What mean by "access" exactly? In the above case, I could only get the principal plus interest in a lump sum on 1 Nov 2024. I understand that it should mean that I cannot access the principal and interest, right? Further, would it be the same case if the auto-renewal could possibly be cancelled before 30 Oct 2023, but I keep it untouched without cancellation? Thanks.

I have a bank account in Hong Kong and I have put the money in time-deposit. Normally, the interest is credited yearly. However, I have opted for auto-renewal for one year earlier this month. May I know whether the interest will be taxed in 2023-2024, or in 2024-2025 when I will get back my principal and interest? The details are listed below, thanks. - Time-deposit set up on 2 Nov 2022 - Opt for auto-renewal on 10 Jul 2023 - No money will be credited to my account on 1 Nov 2023 - Principal plus interest will be credited to my account on 1 Nov 2024. - I will apply for split year treatment (I will come to UK and work on 1 Sep 2023). Hence, with working in UK for >183 days, I will be tax resident in year 2023-2024. Thanks a lot.

Re your last paragraph, may I have the link for the guidance at section 9.11 & 9.12, please? As I have the same question on whether I need to report my interest from HK bank account. One more question, may I know whether the interest is taxable (i) when it is generated, or (ii) when it is tranferred to UK. Thanks.

I will migrate to UK using BN(O) visa on 1 Sep 2023 and I have not been to UK before. I have a few funds purchased through insurance company in Hong Kong in which I will withdraw some money from them before arriving UK to support my life. I will also apply for split-year before 1 Sep 2023. May I be advised whether I understand the below correctly, please? (1) I suppose I will be considered as tax resident in 2023-2024 as I will be in UK for more than 183 days. (2) In normal cases, only the net gain of the funds will be counted as personal income, if taxed. Also, Time Apportioned Reduction applies. (3) If the money is withdrawn before 31 Aug 2023 (split year on 1 Sep 2023), is the sum of money still taxable? Thanks.