HMRC Admin 32 Response

Hi,

An Exchange Traded Fund (ETF) is a form of Collective Investment Scheme and contains a pool of investments (‘the scheme property’) derived from the contributions of investors.

STSM101060 - Introduction to Collective Investment Schemes: Exchange Traded Fund

The taxation of ETF's is determined by the the asset class. Bonds are subject to Income Tax, with equities and commodities being subject to dividend tax. All three are subject to Capital Gains Tax.

Thank you.

Hi,

You have not advised the nature of source of income in Australia. If the income is from 'non savings income', then you can claim a foreign tax credit of up to 100% of foreign tax paid. You will need to work out your UK tax liability with and without the overseas income. The foreign tax credit will the difference between the two tax liabilities, with the tax credit being up to a maximum of 100% of the overseas tax deducted.  

Have a look at HS263 for more information.  

Relief for Foreign Tax Paid 2023 (HS263)

Thank you.

Hi,

Please see Tax on foreign income: Overview - GOV.UK (www.gov.uk) which confirms as UK resident you are required to report your foreign income to the UK.

Tax on foreign income

If this relates to self employment, you will declare the income in your self employment section and claim any Foreign Tax Credit Relief in the foreign section of the Return. If employment, you will show in the employment section and again claim any Foreign Tax Credit Relief in the foreign section.  

Thank you.

Hi,

As you are the legal and beneficial owner of the share, you will be subject to Capital Gains Tax for the shares trasferred to your sister. You will need to obtain the market value of the share at the date of acquisition by you and the date of disposal to your sister. The difference, minus acquisition/disposal costs (such as broler fees) is deducted from the gain, to obtain the taxable figure. You can then deducted the annual exempt allowance, to work out the amount subject to tax. Shares are taxed at the lower rate of 10% and the higher rate of 20%.  

If all of the basic rate band is utilised against your UK income, the gain will be charged at the higher rate of 20%. Any of the basic rate not utilised against your income can be set against the lower rate of 10% capital gains, with the remainder taxed at 20%.

Thank you.

Hi,

Have a look at the guidance below on simplified expenses.

Simplified expenses if you're self-employed

It advises that you cannot use simplified expenses as the car is a modified dual control driving instructors car.  

Further guidance on expenses can be found at:

Expenses if you're self-employed

Thank you.

Hi,

You will be able to claim private residence relief on the gain arising from the disposal. If this relief covers the full amout of gain, then no Capital Gains Tax is payable, but a tax return should still be submitted.  

There is a calculator below, which will help you work out your gain.

Work out your tax if you're a non-resident selling UK property or land

Have a look a the guidance below to help work out the private residence relief.

HS283 Private Residence Relief (2022)

Thank you.

Hi,

Yes, you will need to register for self assessment, as you are in receipt of overseas income, regardless of how little it may be. Interest from overseas bank accounts, is taxed in the same way as UK interest.  

Please have a look at the guidance below and take the residency tests.

RDR3 Statutory Residence Test

This will help you determine whether all of the interst is taxable or just the proportion arising from when you came to the UK, to the end of the tax year.

Thank you.

Hi,

The HMRC online 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,

No you cannot add this to a 2022 to 2023 tax return. Each tax year needs to be looked at separately. Although it is too late to amend your 2019 to 2020 tax return, you can still claim, in writing, 'overpayment relief' for 2019 to 2020, up to 5 April 2024.  

Please follw the guidance below to ensure you use the correct formatting for claiming overpayment relief.

SACM12150 - Overpayment relief: Form of claims

Thank you.

Hi,

If you are in receipt of overseas income or capital gains, no matter how little it is, you meet the criteria for completing a Self Assessment Tax Return.  ax in the UK is calculated by default, using the 'arising basis' on all of your world-wide income and gains would be taxable in the UK. As you are resident in the UK, but not domiciled, you can opt to choose the 'remittance basis' of tax, which means that you only pay tax on your UK income and gains and any overseas income and gains remitted to the UK. As you have paid tax in the UK on the income you sent to your savings account in India, you would only need to declare the interest arising from the capital in your savings account.  

Have a look at section 9 of RDR1 as the remittance basis is not always the best option.

Guidance note for residence, domicile and the remittance basis: RDR1

Overseas income and gains should be conferted to pounds sterling and declred on the tax return. The rules for taxing savings interest would apply equally to IK interest as it would to overseas interest.

Thank you.