HMRC Admin 32 Response

Hi,

If your employer has processed the stock option exercise through the payroll, this will be reflected in your P60 at the end of the tax year.

If you’ve entered into a formal National Insurance contributions (NICs) election to meet employer’s NICs due on the exercise of an option or on the acquisition of certain types of shares, you can deduct the employer’s NICs you’ve paid in calculating the tax due.

If you’ve entered into a NICs agreement instead, you can only deduct the NICs you paid to your employer before 5 June following the tax year in which the relevant share transaction occurred.

Thank you.

Hi,

You may be subject to Capital Gains Tax on the USA property, if you return to the UK in the tax year in which it is disposed of. If this is the case, you would be able to claim a credit for up to 100% of the USA Capital Gains Tax paid.  

Have a look at the below for private residence relief, which may apply.

Private Residence Relief (Self Assessment helpsheet HS283)

Thank you.

Hi,

No. This cash gift is not subject to UK Tax. In general, HMRC will accept your statement, that the money is a cash gift.

Thank you.

Hi,

Please see Tax on foreign income: Overview.  

Tax on foreign income

As a UK resident you are required to declare your worldwide income in the UK. The question as to whether you are self-employed or in a partnership is one for you to decide.  

Thank you.

Hi,

If the Chargeable Event Certificate shows the 3 names then you should each declare your third share on the foreign section of the Self Assessment return headed “Other overseas income and gains”

Thank you.

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.