HMRC Admin 32

Hi,

As making tax digital will align accounting periods with the tax year, your accounts will be made up to 5 April. As you started 31 August 2021, the 2021 to 2022 return is required to show income 31 August 2021 to 05 April 2022.

Thank you.

Hi,

There are no Income Tax implications on the receipt of a cash gift unless the income generates interest or dividends. These would then potentially be subject to tax. Further guidance can be found here:

Tax on savings interest

Tax on dividends 

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Hi,

Please refer to guidance below as this will have an effect on whether capital gains is due on either property.

CG64485 - Private residence relief: only or main residence: two or more residences: right of nomination

You can find more information on if you qualify for private residence relief here:

Private Residence Relief (Self Assessment helpsheet HS283)

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Hi,

RDRM12010 advises Under the SRT, an individual is either UK resident or non-UK resident for a full tax year, and at all times in that tax year. However, if during a year the individual starts to live or work abroad, or comes from abroad to live or work in the UK, the tax year will be split into 2 parts, if their circumstances meet specific criteria: a UK part for which they will be charged to UK tax as a UK resident an overseas part for which, for most purposes, the individual will be charged to UK tax as a non-UK resident.  

RDRM12010 - Residence: The SRT: What is a split year 

This means that for the most part, foreign income in the non-UK resident period is not taxable in the UK. Some types of income are still taxable in the UK, such as income from property.  

RDRM12160 goes on to advise, The overseas part of the tax year starts at the beginning of the tax year and ends the day before the earliest point at which an individual meets the only home test.  The UK part of the tax year is the period from the end of the overseas part until the end of the tax year.  

RDRM12160 - Residence: The SRT: Split year treatment: Case 4: The overseas and UK parts of the tax year

Thank you.
 

Hi,

You can claim the relief if the pension contributions are deducted from your pay after tax.

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Hi,

You should check with the accountant how they calculated that figure. If the difference is for national insurance you may not be registered to pay this.

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Hi,

Non residential property is declared in the "Other property, assets and gains" section of SA108 and the online tax return.  

"This section must be used for any assets that do not fall within the other sections and for any gains or losses on disposals for which Business Asset Disposal Relief (previously Entrepreneurs' Relief) is claimed".  

The guidance notes below will be of some help.

Capital Gains Summary notes

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Hi,

Have a look at putting the money into a trust for the individual. There is some guidance on trusts and taxes at:

Trusts and taxes

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Hi,

The UK deducts tax on the arising basis. This means that if the charge from the councile arose in 2020 to 2021 tax year, then the full cost of the repair should be shown in 2021 to 2022 tax return.  

On SA105 (2021) the full £4000 Roof repairs would be shown in box 25 "Property repaid and maintenance". Should a loss arise, there is guidance at:

HS227 Losses (2021)

Please note that the last date to amend 2020 to 2021 tax return is 31 January 2023. If it is too late to amend the tax return, then an overpayment relief claim can be made instead.  

Guidance on how to make an overpayment releif claim can be found at:

SACM12150 - Overpayment relief: Form of claims

Thank you.

Hi,

You will need to determine your residence status, to work out if this income should be declared.  

Have a look at

Tax on foreign income 

RDR3 Statutory Residence Test 

If you are considered to be resident in the UK for the whole tax year, you will need to declare this period of foreign income. You would also be able to claim a Foreign Tax Credit Relief, if there is a double taxation agreement between the UK and the other country.

Thank you.