HMRC Admin 19 Response
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RE: Reassign dividends as pension contributions?
Hi,
You would still declare this as PAYE income as it has already paid as this. What you then do with the salary payment is up to you.
Thank you. -
RE: Pay Capital Gains Tax on proporty sale as executor of estate
Hi,
If you are reporting on behalf of someone else, including a trust or estate, you can use your own Capital Gains Tax on UK property account to report for someone else.
You will need proof that you are allowed to report on their behalf, such as a lasting power of attorney. If the person has died, you will need their date of death.
Report and pay your Capital Gains Tax
Thank you. -
RE: CGT on jointly held investments (Grandchildren)
Hi,
Each beneficiary would be required to complete a Self Assessment tax return, to report their trust income and claim back any overpaid tax, paid by the trust.
Thank you. -
RE: Registration of Overseas Loan for Tax with HRMC
Hi,
We can only provide general information and guidance in this forum. For an answer to a detailed question of this nature, you would need to contact our Self Assesment team or consider seeking professional advice.
Self Assessment: general enquiries
Thank you. -
RE: Cryptocurrency transfer to spouse living abroad
Hi,
There is no tax liability arising from the transfer of assets between spouses. Your husband would acquire the asset with the same acquisition costs that you incurred when buying the crypto. If he sold the crypto, then any capital gain calculation would use this value.
Thank you. -
RE: Tax on overseas loan repayment to UK
Hi,
We can only provide general information and guidance in this forum. For an answer to a detailed question of this nature, you would need to contact our Self Assesment team for advice or consider seeking professional advice.
Self Assessment: general enquiries
Thank you. -
RE: UK Australia double taxation agreement
Hi,
Article 17 of the UK / Australia tax treaty covers pensions:
2003 Australia-UK Double Taxation Convention - in force
It advises that pension payments are taxable in the individual's country of residence. The article makes no mention of lump sums. This means that a lump sum from a UK pension is taxable in the UK, as there is no agreement in place. You would need to claim a repayment of tax from HMRC for any excess tax deducted and claim a credit for UK tax paid when declaring the lump sum in Australia.
Claim a tax refund when you've taken a small pension lump sum (P53)
Thank you. -
RE: Undeclared income from rental of property in the EU
Hi,
Your mother's Hong Kong Civil Service pension is not taxable in the UK and should not be included in a tax return. However, article 11 states that interest is taxable in the UK:
2010 Hong Kong-UK DTA
The interest should be declared for each tax year in which it arises.
Thank you. -
RE: buying and selling Gilt in secondary market
Hi,
Investors buying Gilt-edged securities or 'gilts' are lending money to the government, known as the principal, which operates like an IOU. While waiting for the money to be repaid at a specified date in the future when the gilt matures, investors are paid interest at a fixed rate known as the coupon. This payment typically happens twice a year. Strips involve the separation of the interest ‘coupons’ from the underlying principal on which the interest is payable. Certain gilts, and other securities, are strippable in this way. The holder can surrender the gilt to the Bank of England, receiving in return a number of gilt strips, each of which is treated as a gilt in its own right. Each strip is simply a right to receive a payment at a future date. It carries no interest and therefore is like a zero coupon bond. Anyone buying a gilt strip would pay less than the redemption amount, how much less would depend on the period from purchase to redemption. You can see guidance here:
CFM37150 - Loan relationships: special types of security: gilt-edge securities: gilt strips
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. You can see the guidance here:
SAIM3010 - Deeply discounted securities: introduction
UK gains from DDS are declared in the supplementary page, SA101 box 3, and foreign gains from DDS at box 41 of supplementary page SA106 and where appropriate, claim a Foreign Tax Credit Relief in box 2.
Thank you. -
RE: Question on 'foriegn income' and tax return
Hi,
Your client's pay you in US dollars, so you would declare the payment in US dollars in your income in the tax return, but for the purposes of the tax return, converted to GBP sterling. You should not use the sterling figure in your bank account, as the exchange to sterling is not part of your gross income. Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate. For your convenience, there are exchange rates here:
Exchange rates from HMRC in CSV and XML format
and for older rates here:
Foreign exchange rates and spot rates: 1 January 1989 to 31 March 2009
You are free to use any of the supplied rates or one of your own choosing.
Thank you.