HMRC Admin 32 Response

Hi,

If the total chargeable gain is covered by your annual exempt allowance, then there is no requirement to report the gains to HMRC, unless you have to complete a Self Assessment Tax Return for any other reason and the disposal value of your assets exceed £49200.  

You will need to declare the gains in your tax return. Non residential capital gains liability is charged at the lower rate of 10% and the higher rate of 20%. Once your income tax liability is calculation and you have unused basic rate band, the the lower rate of capital gains tax can be set against the gain up to the basic rate band. Any remaining gains are then taxed at the higher rate of 20%.

Whether you choose to dispose of all the shares at once or over several years is up to you. You may wish to seek professional advice, whether from an accountant or financial advisor. We cannot advise which.

Thank you.

Hi,

The HMRC online version of the tax return, does not support the submission of the SA109 (residence) section or other sections for trusts or partnerships, so to submit an online tax return, you would have to buy a commercial self assessment tax return, that does include this area.  

A list of commercial software suppliers can be found at:

Self Assessment commercial software suppliers

You will be able to submit a paper SA109 to amend your captured tax return, so that you can claim split year treatment. 

Thank you.

Hi,

If the number of months that the property was your main resdience, plus a further 9 months, is greater or equal to the number of months that you owned the property, then there will be no capital gains liability in the UK.

Thank you.

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.

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.

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.

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.

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.

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.

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.