HMRC Admin 32 Response
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RE: Spilt year treatment and foreign income
Hi,
As UK resident you are required to report your worldwide income to the UK.
You should check the Statutory Residence Test here RDR3 Statutory Residence Test as HMRC are unable to confirm whether or not you are eligible for split year treatment.
RDR3 Statutory Residence Test
Please also see Tax on foreign income: Overview.
Tax on foreign income
As SA109 is not supported by HMRC software you will need to purchase commercial software if you wish to submit your return online.
You will find a list of commercial software suppliers here Self Assessment commercial software suppliers.
Commercial software suppliers for Self Assessment
If you do not wish to purchase commercial software then the form will require to be submitted by paper by 31 October. Based on the information you have provided, you will require to complete SA100, SA103, and SA109. SA106 will only be required if you wish to claim Foreign Tax Credit Relief for any tax deducted on this income in Hong Kong.
Thank you. -
RE: Split Year & Self assessment
Hi,
HMRC cannot advise on whether you are UK tax resident for the year or not. You will need to use the Statutory residence test to determine this on your own personal circumstances.
Guidance can be found here:
RDR3 Statutory Residence Test
You may also find this link helpful Tax on foreign income: UK residence and tax.
Tax on foreign income
Thank you. -
RE: Work remote in UK for a Dutch employer
Hi,
You will have to establish your residence position in the first instance. Please see RDR3 Statutory Residence Test which will help you do this.
RDR3 Statutory Residence Test
Please also see Tax on foreign income: Overview.
Tax on foreign income
If you are regarded as UK resident then you are required to declare your worldwide income to the UK. If not UK resident then your income should be declared to your country of residence.
With regard to your national insurance enquiry, please contact the National Insurance team.
National Insurance: non-UK residents
Thank you. -
RE: Receiving property as gift in India
Hi,
Please see Tax when you sell property.
Tax when you sell property
There will be no tax for you to pay when the property is transferred to you but you may be liable for Capital Gains tax when you sell the property.
You do not need to declare the gift when it is transferred, only if liable for Capital Gains tax when sold, would it be declared.
Thank you. -
RE: CGT - Buy To Let Renter Defaults - 30k losses vs CGT taxes
Hi,
The costs of evicting the tennant can only be set against the income from the property in box 27 of SA105.
UK Property Notes
PIM2120 - Deductions: main types of expense: legal and professional costs
General maintenance and repairs can only be set against property income.
See PIM2025 below.
PIM2025 - Deductions: repairs
Where improvements, such as a conservatory or and extension have increased the value of the property, the these can be considered as capital in nature and set against any capital gains.
Replacements, such as doors, windows, roof tiles, boilers can only be set against property income.
Please also have a look at PIM2072, regardng bad and doubtful debts.
PIM2072 - Deductions: main types of expense: bad and doubtful debts
Where the expenses are greater than the income, a loss arises. This can either be carrief forward or set against other income.
Thank you. -
RE: Tax on foreign property gift
Hi,
Please see Tax when you sell property.
Tax when you sell property
There will be no tax for you to pay when the property is transferred to you but you may be liable for Capital Gains tax when you sell the property.
Thank you. -
RE: Sender's financial charge and cash basis
Hi,
You would declare £100 as income and claim an expense of £15. Please note that if you’re using cash basis accounting, you can only claim up to £500 in interest and bank charges.
Expenses if you're self-employed
Thank you. -
RE: Reporting CGT on Overseas Property sale
Hi,
If there is no gain arising from the disposal of the overseas property, there is nothing to declare. You would need to review the statutory residence test, to determine your residence status for 2021 to 2022.
RDR3: Statutory Residence Test (SRT) notes
If you are considered to be resident in the UK for the whole tax year, you will then need to review whether split year treatment applies. If it does, you will need to delcare this in a Self Assessment Tax Return. If split year treatment does not apply, then you would need to declare your world-wide income on a tax return and claim a foreign tax credit for 2021 to 2022.
Thank you. -
RE: CGT on foreign property sale within nine months of migration
Hi,
Please see HS283 Private Residence Relief (2023).
HS283 Private Residence Relief (2023)
If this was your only home and you had lived in it for the full period of ownership then you are entitled to private residence relief for the final 9 months, regardless of whether you had lived in it in those final 9 months. If your gain is fully covered by private residence relief then there is nothing for you to declare as a Capital Gain.
Thank you. -
RE: Stock options and RSUs, UK employer
Hi,
If your employer has processed the RSU's, even if they are overseas and this is reflected in your P60, you would include this in the employment section of the tax return. Where overseas tax was deducted, you can claim a tax credit for this in the foreign section. By referring to ERSM20193, my colleagues are highlighting the guidance that the payments from RSU's are considered employment income and will be taxed as such. If the RSU's are not included in your P60, you would show the money for the RSU's in the tips and other payments box in the employment section.
Thank you.