HMRC Admin 19 Response

Hi,

The guidance at CG6550 advises that dependent relative relief is not available for "any residence acquired after 5 April 1988". For capital gains purposes, the term 'acquired' means when the property was purchased. The property was acquired in 1993.

The guidance also states that "any residence acquired before that date, the dependent relatives must occupy the dwelling house rent free and without any other consideration". Based on the information provided, dependent relative relief would not be due.  

CG65550 - Private residence relief: dependent relative: introduction

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Hi,

Overseas self employment income is declared in the self employment section, SA103D or SA103F, of the tax return. If any overseas tax has been deducted from this income, you will also need to include it in on SA106, to claim a Foreign Tax Credit Relief.

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Hi,

Yes, you do need to complete a Self Assessment return.

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Hi,

You would simply transpose the income from a US tax year, 1 January 2022 to 31 December 2022, into the UK tax year, 6 April 2022 to 5 April 2023. You do not need to apportion to try and match the UK tax year. For example, if you earned £10000 of interest in a US tax year, you would declare £10000 interest is a UK tax year.

Thank you.

Hi,

You will need to contact our Income Tax team to update this.

Income Tax: general enquiries

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Hi,

The guidance at CG78300 advises that currency, other than sterling, is a chargeable asset and its disposal can give rise to a chargeable gain or an allowable loss. Exemption is available to individuals in respect of currency representing currency acquired for personal expenditure outside the United Kingdom.  

CG78300 - Foreign currency: introduction

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Hi,

The following guidance advises that employees who are ordinarily UK resident, see EIM42810, in the United Kingdom are taxable on their general earnings. The benefits are chargeable as general earnings.  

EIM33000 - Seafarers’ Earnings Deduction: introduction and table of contents

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Hi,

When you purchase a second home you must write to HMRC, to advise that your first property will be your main residence, for Private Residence Relief purposes. You can see guidance here:

Tax when you sell your home

If the Private Residence Relief is 100% of the gain arising from the disposal of your main residence, no Capital Gains Tax is payable and no gain is reported.  

You will need to advise HMRC of the change to your main residence and update your personal tax account, to reflect your new address

Personal tax account: sign in or set up

Guidance on stamp duty can be found here:

Stamp Duty Land Tax

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Hi,

As you were resident in the UK for most of the tax year, you will be resident for the whole tax year for Income Tax purposes.  

If split year treatment applies, you would only declare your worldwide income, and, or capital gains from 12 April 2022, when you arrived in the UK. If any of your income, and, or capital gains arises outside of the UK, then it is regarded as foreign income and must be declared in a Self Assessment tax return.

Foreign income and capital gains are reported on SA106, with capital gains also reported on SA108, regardless of whether tax was paid in another country or not.  

A state pension is paid from the date that you reach eligiblity for state pension, the amount received in the tax year is declared on SA100.

Capital gains and losses are separate to Income Tax and are reported on SA108, as well as SA106, if they are foreign income and gains. This does not make you self employed.  

Tax already paid on foreign investments, and, or gains, should be reported on SA106 and any tax paid in the other countries, should be declared, as you may be able to claim a foreign tax credit, for the overseas tax paid.

Capital gains losses, do not need to be reported, however, if you want to claim for losses and carry them forward, you will need to report them in your tax return in SA108.

Thank you.

Hi,

The guidance at IFM3120 advises that income arising during a distribution period is not distributed to investors as cash, but is retained in the fund as an additional captital investment on behalf of the investor. The amounts reinvested are taxed as income accruing to investors in the same way as if it had been distributed.  

This means that you are taxed each year on the amount reinvested in the same way as if it had been paid in cash. This prevents investors delaying payment of Income Tax, through long term accumulation of income.  

IFM03120 - Investors in authorised investment funds (AIFs): accumulation units

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