HMRC Admin 32 Response

Hi,

If your grand-father's estate included his home, which he is giving away to his children (including adopted, foster or stepchildren) or grandchildren, then his Inheritance Tax threshold can be increased to £500,000.  

Please have a look at:

How Inheritance Tax works: thresholds, rules and allowances

Thank you.

Hi,

As the Isle of Man is outside of the UK, you are in receipt of foreign interest. This foreign interest should be declared in a self assessment tax return each year. If you do not already complete a tax return, you will need to register for one at:

Check how to register for Self Assessment

Thank you.

Hi,

You can download the supplementaray pages (SA109 - Residence) from:

Self Assessment tax return forms

The tax return can only be ordered by telephoning the orderline. The 2023 to 2024 tax return is not available on the internet.

The Self Assessment Orderline number from overseas is +44 161 930 8331 (Monday to Friday 8am to 5pm.  Closed on weekends and Bank Holidays).

Thank you.

Hi,

You can claim foreign capital gains losses in your self assessment tax return. You declare the losses in the capital gains section. Foreign income tax and foreign capital gains tax are two separate taxes and one cannot be set against the other.

Thank you.

Hi,

The foreign dividend would be taxable is should be declared on your tax return.

Thank you.

Hi,

Please contact the Inheritance Tax team for advice.

Inheritance Tax: general enquiries

Thank you.

Hi,

Yes, that is correct.

Thank you.

Hi PAT432518,

1. As per the guidance link you provided, it is exempt from CGT    
2. Deeply Discounted Securities’ (DDS) are government securities, commercial bonds and loan stock, where the amount paid on redemption is higher than the price at which they were issued. The difference is the discount and represents the whole or part of the reward to the holder of the security for the use of the money borrowed by the security issuer. Where certain conditions apply, the tax rules ensure that gains on such securities are taxed as income, rather than as capital gains.
   
   SAIM3010 - Deeply discounted securities

If you invest in deeply discounted securities, put the difference between what you paid for the bond and what you redeem or sell it for in box 3 of SA101 (page Ai1)

Thank you.

Hi,

Yes, this is correct.

Thank you.

Hi,

As previously stated for convenience of the income and working out the foreign tax credit, you will use the US calander year income to report it in the UK.

Thank you.