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  • RE: Interest on Children's savings account

    So, no matter who deposited into the children account, once interest is generated (over £100) in the bank account, it has to be taxed. Given the mixed funds, is it that either parents (father or mother) can file the interest in children bank account in his/her tax reporting?
  • RE: Interest on Children's savings account

    I would like to ask what if the money is deposited from various sources such as parents, grandparents, relatives and friends over the past years. The fund would be mixed in the children bank account. When there is a withdrawal, it is impossible to know whether the withdrawal comes from parents, grandparents, relative or friends. Thus, when there is interest accrued in the children bank account during a tax year, say £300, how do we know whether it is related to the funds from parents, grandparents or others, and reported for tax accordingly? Please explain.
  • RE: Interest on Children's savings account

    I read the guidance. It counts on a tax year basis, each year, for interest amount earned from money given by a parent. Please further clarify that if during the year, I only gave £1000 into children which earns only £40 interest for that amount, and the children has an opening bank balance of £5000, which cumulated from past years from parents and earns £200 during the year, does it mean that the total interest £240 has to be taxed for the year or since, on tax year basis, only £1000 was injected, which earned £40 for that year, no tax is needed?
  • Interest on Children's savings account

    I understand that if a child earns more than £100 in interest (in his/her bank savings account) in a single tax year from money given to them by a parent, that should be declared to HM Revenue and Customs. I would like to ask whether the interest arising from the money given by a parent counts on cumulative basis or tax year basis? For example in 2023-24, a parent (Father) deposited £2000 into his child bank account, it earns £80 (assumed 4% interest rate), my understanding is no tax reporting is needed as it is below £100. If, in tax year 2024-25, the father further deposited £1000 into his child bank account, and by the end of 2024-25, the child earned £120 interest (the total bank balance is £3000 i.e. £2000 in 2023/24 and £1000 in 2024/25), does the father need to report £120 interest in tax year 2024/25? Or it only counts on the money deposited into the child in the tax year 2024/25 (i.e. £1000), which earns £40 interest only, and need not be reported to HMRC.
  • Trading listed shares or securities

    If I incurred a loss in trading listed shares or securities, when i filled in the "Capital Gains Tax Summary" (SA108), my understanding is to fill in the loss in box 27. If I wish to set off any gains from shares trading for the tax year, 1) should I fill in Box 28? If yes, what code to apply? 2) do I need to fill in Box 48 as well for the loss in shares trading?
  • RE: Dividend and interest payment from non-UK insurance policy

    I read the HS321 and it seems that I only need to report the gain on foreign life insurance policies when surrender, matured, death, sold or was a personal portfolio bonds. As you said above, for the increase in policy value (while I still maintain the policy), I do not need to report until surrender or matured. BUT, you also said interest or dividends arising from the insurance policy has to be declared. My understanding is that this year's Policy Value equals to "last year policy value" plus "any interest and dividends accrued during the year". If we have to declare interest and dividend for tax assessment each year, it will be double-taxed when the policy surrendered (as the policy value included past interests and dividends accrued). Can you please clarify whether those interests / dividend accrued (not withdrawn, remain in policy) has to report in self-assessment annually or wait until the policy surrender?
  • RE: BNO

    I received my last income from my past employer in HK after I arrived UK. I am currently a UK tax resident My questions are: 1) Do I need to report this income as foreign income in my UK self-assessment? 2) Since this income arised from my past employment in HK, it should be subject to HK tax. Based on double tax treaty, it seems the HK income has no tax liability in the UK. So, if I report this income in the UK self assessment, can I claim any tax credit for this amount? if so, which form I have to fill in?
  • Dividend and interest payment from non-UK insurance policy

    I am a UK tax resident but hold a non-UK life and saving insurance policy. I have to pay a monthly insurance premium of US$300 and the policy will have a life cover of US$50,0000 (i.e. my beneficiary will receive US$50,000 when I passed away). I will receive an annual dividend and interest from the insurance company for this policy if I do not cancel / surrender the policy of about US$200 per annum. If I choose to surrender the policy, the insurance company will pay out the accrued dividend, interest and policy value (for example, surrender in 6 years, the policy value may have accrued to US$4000). In other words, if I surrender the policy (earlier than I passed away) at the end of 6 years, I will get US$5200 (US$4000 policy value PLUS 6 years of US$200 dividend & interest). My questions are: 1) For the dividend & interest accrued to me annually, do I need to include in tax filing and pay any UK tax (note: I have not withdrawn the dividend or interest)? 2) For the increase in policy value every year, do I need to report for UK tax? Will the increase in policy value induce any capital gain tax? 3) If I surrendered the insurance policy, do I need to pay UK tax? If yes, should the surrendered value to be deducted by the total premium paid to arrive at the capital gain for tax consideration?
  • Tax on foreign dividends

    I am a tax resident in the UK and hold listed Chinese and US company shares. When I receive dividend payout from these China companies or US companies, they will charge withholding tax of 10% and 30% respectively. In other words, for every $100 dividend, withholding tax of $10 will be charged by China company and $30 charged by US company for their tax authorities. 1) Do I need to report the dividend income of $90 and $70 to HMRC for self assessment or tax return? 2) If yes for (1), can I claim any tax exemption for these reported income (total $160) as I have already been taxed in China and US? Any max amount of tax exemption?
  • RE: BNO

    Is dividend payment of Unit trust made by way of extra unit, instead of cash, subject to U.K. tax? How to account for the value?