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  • RE: Foreign income

    Hello HMRC admin, I would be really grateful for a reply to my latest enquiry above. Thank you. Kind regards, DL
  • RE: Foreign income

    Hello, Thank you for your prompt reply. For foreign dividends, I thought it is not necessary to declare if the total dividends, including UK dividends, are less than the e £2,000 dividend allowance? See link: https://www.gov.uk/tax-foreign-income/paying-tax However, you mentioned 'The only exception is if it is dividends below £300'. Can you please point me to the relevant guidance on this? Thank you. Kind regards, DL
  • Foreign income

    Hi HMRC admin, My wife is a UK tax resident in 2021-22. She had no income in UK but she made a foreign income of about £1000. She had no other income. Does the personal income tax allowance cover foreign income? If yes, as her above-mentioned foreign income is within the personal income tax allowance, am I correct that she does not have to pay UK tax for this foreign income and it is not necessary to file a self-assessment tax return for it? Thank you. Kind regards, DL
  • RE: Split year treatment

    Hello HMRC admin, I arrived in UK from Hong Kong in September 2021 and became a UK tax resident in 2021-22. Prior to coming to UK, I had income in Hong Kong from my previous employment and also from saving insurance. I have checked the criteria and am confident that I am qualified for split-year arrangement and it's not necessary to report my income in Hong Kong in 2021-22 before coming to UK. My question is: Do I need to submit a self-assessment tax return only for the purpose of applying for the split-year arrangement? I thought the answer was yes but based on admins' replies in this thread I am now slightly confused. If I need to file a tax return in order to apply for split-year treatment, shall I fill in both SA100 and SA109? Thank you so much. DL
  • RE: Split year arrangement

    Hi, Thank you for your reply. Sorry it might be my own ignorance and confusion. As HRMC Admin 17 points out in the first reply, I will have to file a self-assessment tax return in order to apply for split-year arrangement in 2021-2022. However, when I tried to register for self assessment using the SA1 form, I am asked to answer a question on why I need to complete a tax return, but none of the options in the form is about application for split year arrangement. The six options provided for my choice, as mentioned in my last message on 6th July, does not seem to apply to my own circumstances. Therefore, it is unclear what I should choose as my answer to this question. The latest link you provide does not provide any advice on the above as well. So I would be really grateful if you could point me to the right direction. Thank you so much. Kind regards, DL
  • RE: Split year arrangement

    Also, as I have not submitted any self-assessment tax return before, I understand that I will have to register for self assessment first. Am I correct that I should use the SA1 form? In the form, there is a question on 'Why do you need to complete a tax return?' and the options are : - I am a company director (company directors with income taxed at source and no further tax to pay do not need to complete a tax return) - I'm getting income from land and property in UK - I'm getting taxable foreign income of £300 or more - I receive annual income from a trust or settlement - My annual income will exceed £100,000 - I've untaxed income which cannot be coded in PAYE I believe none of the above is applicable to my case because my income in Hong Kong should not be taxable as long as I am qualified for split-year arrangement. May I have your advice on what should I choose? Thank you. DL
  • RE: Payment from a retirement benefits scheme in Hong Kong

    Good morning. Thank you for your reply. Just want to make sure that my understanding is correct as I am slightly confused. According to Article 17 of the UK/Hong Kong tax treaty, the lump sum pension payment as a form of retirement benefits will only be taxable in Hong Kong (but actually I don't need to pay tax for it in Hong Kong according to Hong Kong tax law). I have just conducted a search in this forum and found that someone else from Hong Kong had raised very similar questions and they were advised that it would not be necessary to report such pension payment in a self-assessment tax return to HMRC. See link: https://community.hmrc.gov.uk/customerforums/pt/45c3cdde-9c9d-ec11-826d-00155d9c6f58#8cb178df-9c9d-ec11-b400-6045bd105228 https://community.hmrc.gov.uk/customerforums/sa/1d9209bf-757d-ec11-b820-00155d974e5f#7bb86c4c-bb7d-ec11-8d21-6045bd0e67bf In view of the above, I should be grateful if you would clarify whether I really need to report this lump sum pension payment to HMRC. If I have to report it and given that I don't need to pay tax for this pension payment in Hong Kong (therefore can't claim Foreign Tax Credit Relief re: the Hong Kong tax paid), will I be eventually taxed here in the UK which contravenes Article 17? Thank you so much. Kind regards, DL
  • RE: Split year arrangement

    Good morning. Thank you for your reply. Just wondered if the link is a wrong one? DL
  • Payment from a retirement benefits scheme in Hong Kong

    Hi HMRC admin, Context: - I came from Hong Kong to the UK on 10th September 2021 and stay here since then, therefore becoming a UK tax resident in 2021-2022. - I was an employee in Hong Kong before I came to UK. As part of my retirement benefits, I was enrolled into a pension fund scheme which consisted of two parts. The first part is the mandatory contribution made by my employer and me as per the legal requirement in Hong Kong, and the second part is the additional voluntary contribution made by my employer as per my employment contract. All the contribution went into the same pension fund account. - In October 2021 (i.e. after I came to the UK and became a UK tax resident), I received a lump sum payment from the above-mentioned retirement benefits scheme covering the voluntary contribution made by my employer during my employment with them in Hong Kong. Question: (a) Am I correct that, as per Article 17 of the tax treaty between UK/Hong Kong, the above lump sum payment shall only be taxable in Hong Kong, not the UK? (b) Assuming my understanding in (a) is correct, do I need to report this lump sum payment to HMRC (by self-assessment form or other means) and then claim tax relief? Or shall I just do nothing in this regard? Thank you so much. DL
  • Split year arrangement

    Hi HMRC admin, Context: - I came from Hong Kong to the UK on 10th September 2021 and stay here since then, therefore becoming a UK tax resident in 2021-2022. - I have checked the relevant HMRC guidance and reviewed my own situation accordingly. I believe that I am qualified for the split year arrangement in 2021-2022. Question: - Do I need to apply/claim for the split year arrangement? Or will it automatically apply to me as long as I am qualified so that I don't have to report any income in the non-UK period of the year? Thank you so much.