HMRC Admin 19 Response

Hi,

As the property being let is in the UK and under article 6 of the UK/Japan double taxation agreement, the income from this property is taxable in the United Kingdom.  

UK/Japan Double Taxation Convention

You are a non resident landlord and should be completing Self Aassessment tax returns each year. You can see more information here:

Check if you need to send a Self Assessment tax return

You may also have to pay tax on the property in Japan. If that is the case, you claim a tax credit for the tax paid in the UK and thus avoid double taxation.  

HMRC is currently running a let property campaign, allowing disclosure relating to the past tax years:

Let Property Campaign: your guide to making a disclosure

There are no Income Tax implications arising from the transfer of money to the UK.

Thank you.



 

Hi,

There are no Income Tax implications regarding gifts of cash to children.

There may however be Inheritance Tax implications. You can see more information here:                                                           

How Inheritance Tax works: thresholds, rules and allowances

Thank you.

Hi,

There is an annual exemption, that allows an individual to give away a total of £3000 worth of gifts each tax year without them being added to their estate.  

You can give gifts or money up to £3,000 to one person or split the £3,000 between several people.  

You can give as many gifts of up to £250 per person as you want each tax year, as long as you have not used another allowance on the same person. You can see further guidance here:

How Inheritance Tax works: thresholds, rules and allowances

Thank you.
 

Hi Ganshiv82,

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

Tax on savings interest

Tax on dividends

Thank you.  

Hi.

The 0% VAT in relation to energy saving materials is for the materials and installation of these materials. You can see guidance here:

Energy-saving materials and heating equipment (VAT Notice 708/6)

Where the installation of energy saving materials involves anciallary supplies please see section 2.7.2 of the following guidance:

Installations of energy-saving materials

If existing solar panels are upgraded then this can be installed at the 0% rate of VAT as long as the criteria is met in the above link.

The 0% VAT would relate to the materials and to the installation of these materials but would not include services like scaffolfing which are not of themselves energy saving materials or installation services.

We would recommend looking at the guidance carefully and if you feel that the guidance does not fully answer your questions then you would need to put your queries to our Written enquiries Team.

VAT: general enquiries

Thank you.

Hi Peter Chan,

If you qualify for split year then you only report any foreign income for the UK part of the year. You can see guidance here:

RDRM12000 - Residence: The SRT: Split year treatment: Contents

If you do not qualify then you will need to report all your foreign income to the UK. You can see more information here

Tax on foreign income

The following guidance will help you work out if split year treatment applies. 

RDRM12150 - Residence: The SRT: Split year treatment: Case 4: Starting to have a home in the UK only

Thank you.

Hi Jillian Hainer-Jones,

Please see the guidance here:

Application for a State Pension forecast

Thank you.