HMRC Admin 32 Response
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RE: Tax filing on remittance basis
Hi Kelvin,
Box 34 is for the income that you choose not to remit to the UK in that tax year (box 35 for capital gains). A breakdown of the income and gains, is provided in box 40. All other income is declared for tax purposes.
If you never remit the income and gains to the UK, then it will never be taxable. However, if you remit the income/gains to the UK in a future tax year, the income and gains will be taxable in that future tax year.
Thank you. -
RE: Date of conversion of enhancement expenditure incurred in a foreign currency
Hi,
Each currency conversion is applied at the time the transaction arises. For enhacement expenditure, you would convert this using the a fair and reasonable exchange rate in place at the time the enhancements took place.
Thank you. -
RE: Income Tax on updated past Pension Payments
Hi,
Have a look at the guidance below, regarding pensions paid in arrears.
EIM75020 - The taxation of pension income: pension payments made in arrears or in advance
Where the payment of the arrears results in more tax being paid in the year of the arrears payment, than would arise in the tax years the arrears relate to, you can contact HMRC asking for the payments to be related back to the relevant years.
Thank you. -
RE: CGT Reporting Limit
Hi,
For the tax year 2023 to 2024 the AEA will be £6,000 for individuals and personal representatives, and £3,000 for most trustees. For the tax year 2024 to 2025 and subsequent tax years the AEA will be permanently fixed at £3,000 for individuals and personal representatives, and £1,500 for most trustees. The measure also fixes the CGT proceeds reporting limit at £50,000.
Reducing the annual exempt amount for Capital Gains Tax
The self assessment criteria would be 1, is a tax return required for any other reason and 2, is the disposal value over £50000. If yes to both questions, then the gain must be declared in a tax return, regardless of the type of asset disposed of.
Thank you. -
RE: Remittance Basis - UK source of income
Hi,
In the UK, by default, income and Capital Gains Tax is calculated using the 'arising basis' on world-wide income and gains. Some individuals, can elect to use the remittance basis, to declare income that is not remitted to the UK and so is not included for tax calculation purposes. Unremitted income, must be declared on a Self Assessment Tax Return in the tax year that the income arises (SA109) as it will be taxable in a later tax year if remitted to the UK in that later tax year.
Have a look at section 9 below for more information.
Residence, domicile and the remittance basis: RDR1
Thank you. -
RE: Foreign Tax - SA
Hi,
Although this income is not taxable in the UK, it is still technically world-wide income, so, in the interests of full disclosure, you may choose to mention it in the additional information box 19 on SA100.
Thank you. -
RE: Pension Tax Relief Payments
Hi,
If you have overpaid into the pension, then you need to declare this in a Self Assessment Tax Return, so that the overpaid element can be charged to tax.
You would need to submit SA100 (tax return) and SA101 (additional information) on page Ai4 under pensions savings tax charges, boxes 10 and 11.
You can register for self assessment below, if you have never registered for self asssessment before.
Check how to register for Self Assessment
Thank you. -
RE: Paying UK tax as a dual citizen
Hi,
Only if she has UK income.
Please see further guidance here:
Tax on your UK income if you live abroad
Thank you. -
RE: Singapore CPF
Hi,
Please refer to guidance at:
EIM75550 - The taxation of pension income: lump sums from foreign pension schemes
Thank you. -
RE: Warning message related to "Are you makes any claims or elections" for reporting capital gain
Hi,- Are you claiming anything that can reduce the amount of taxable gain that you have, this can be anything from private residence relief for property, business asset relief, it depends on what you have sold.
- Yes, it is.
- If you are not making any elections, you can save and continue. Further guidance on elections is on page 3 of:
Capital Gains Summary notes