HMRC Admin 19 Response

Hi,

From 6 April 2025, to qualify for the new FIG regime, you need to have at least 10 years of non UK tax residence, prior to becoming UK tax resident. This cannot be made up of multiple periods of non UK residence. It must be a single 10 year period, with no breaks. There is no mention of say 10 of the last 15 years, which does again suggest a single 10 year period prior to becoming resident in the UK.

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Hi,

The commission would appear to be earned income, which would be taxable as self employment income, in a Self Assessment tax return.

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Hi,

Article 17 of the UK / Canada tax treaty, coveres pensions and annuities. As the article does not mention pension lump sums in any way, this means that lump sums are not covered by the tax treaty and as they are not covered by article 20A 'other income' either, there is no tax relief available. For this reason, the lump sum is taxable in the UK, as well as in Canada.

Please have a look at article 21(1)c, the elimination of double taxation. This suggests that to prevent double taxation arising, you should claim a tax credit in Canada for the tax paid in the UK. 

1978 Canada/UK Double Taxation Convention

Annuities, not purchased as part of a pension plan, are taxed at 10% in the UK under the DTA.

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Hi,

Yes, that is correct.

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Hi,

Yes, that is correct.

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Hi,

You can earn £12,570 tax free in the year, represented by the tax code 1257L. Whichever PAYE employment has this code allocated to it will have these tax free allowances applied to your income from that employment. Your other PAYE employment, and your self employment, will be charged at the basic rate of 20%.

However, depending on your income levels, your allowances can be split across your employments, and any unused allowances will be applied when you file your tax return. If you want to discuss the tax due on your specific income in more detai, please contact our Self Assessment team.

Self Assessment: general enquiries

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Hi,

If your salary is £55000 before your pension contributions of £6000 are deducted before tax, making your taxable income £49000, then a tax return would be necessary.

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Hi,

You can see guidance here:

If you make a loss

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Hi,

If you contact our Self Assessment team, we can review the calculation and an amendment can be done if necessary.

Self Assessment: general enquiries

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Hi,

You can see guidance here:

DT4605 - Double Taxation Relief Manual: Guidance by country: Canada: Notes

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