HMRC Admin 32 Response

Hi,

If you qualify for split year then you only report any foreign income for the UK part of the year.

RDRM12000 - Residence: The SRT: Split year treatment

If you do not qualify then you will need to report all your foreign income to the UK.

Tax on foreign income 

The guidance at RDRM12150 at GOV.UK will help you work out if split year treatment applies. 

Thank you.

Hi,

If you requested the amount to go through your tax code this would happen during the 06 April 2023 to 05 April 2024 tax code. We start to generate these tax codes in January.

Thank you.

Hi,

Any underpayment that is prepopulated when you complete the return should have been included in your tax code for the year. Our helplines are busy at the moment. If you call before 10am you can get through quicker.

Income Tax: general enquiries

Thank you.

Hi Bishop69,

Provided that your mother is not a UK resident when she dies, the UK rules on Inheritance and Capital Gains Tax, would only apply to her estate that is in the UK.  For example, property or bank accounts.  

How Inheritance Tax works: thresholds, rules and allowances 

If you were to inherit the property or a share of it and then dispose of it while UK resident, you may be subject to captial gains tax on the disposal of your share of the property. You would have to declare this on a Self Assessment Tax Return.

Thank you.

Hi Marco Caselli,

You will claim the split year in your 2022 to 2023 tax return by completing form SA109.

Thank you.

Hi,

You do not need to enter them on the tax return. The calculation will tell you the total amount due for the year, and you subtract the payments on account from that.

Thank you.

Hi Everton Dantas,

There is no double taxation agreement between Brazil and the UK, so income could be taxable in both countries. However, unilateral relief under DT3901 can be applied to interest received.  
DT3901 - Double Taxation Relief Manual: Guidance by country: Brazil: Admissible taxes

You will need to review your residence, domicile and whether the remittance basis can be applied. 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

Tax on foreign income

Savings are themselved not taxable, but interest arising from the savings is. Even if you have paid tax on this in Brazil, it may also be taxable in the UK. Where unilateral relief applies, a foreign tax credit can be claimed.

Thank you.

Hi,

Article 10(2)(b) of the UK and USA double taxation agreement allows for both countries to tax the dividends and limits Foreign Tax Credit Relief for dividends to a maximum of 15%.  

Uk/USA Double Taxation Agreement - 2002

In the section of the online tax return for foreign dividends, you should enter a reference for the dividends (to help you identify them), the country they are from, the amount of dividend and the tax deducted. The special witholding tax box is for tax deducted under the terms of the European Savings Directive and equivalent third party agreements. This tax will be in addition to any foreign tax deducted by the country of origin of the payment. Please select the rate of 15% and then select yes to the Foreign Tax Credit Relief, only if you want to claim this relief. Click 'add'. Repeat this process until you have entered all of the dividends. You should complete all of the tax return before viewing your calculation. Take a note of the tax due on your dividends. The FTCR is up to a maximum of 15% of the tax deducted in the USA.

Thank you.

Hi,

You do not enter the adjusted income figure on the return. It is calculated based on the information you enter on the return. When completing the tailor your return section, you need to answer yes to the question which asks if you made pension contributions.

Thank you.

Hi,

The main effect for UK investors who have invested in non-reporting funds, as opposed to reporting funds, is that on disposal of their interests they will be liable to tax on any gain arising as if it were income (that is, an offshore income gain, or ‘OIG’) instead of as a capital gain.  

IFM12300 - Offshore Funds: introduction: non-reporting funds

There are certain exeptions to this. Further guidance can be found here:

IFM13400 - Offshore Funds: participants in offshore funds: the charge to tax on disposal of an interest in a non-reporting fund

Thank you.