HMRC Admin 19 Response

Hi Oldtim Hmrc,

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

As this is a regular payment you amy however want to contact your bank to let them know and they may ask for further information.

Thank you.
 

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,

The guidance at DT4617 below, advises that, where a UK resident makes a lump sum withdrawal from an Registered Retirement Savings Plan (RRSP) or an Registered Retirement Income Funds (RRIF), Canada imposes a 25 per cent withholding tax. 

DT4617 - Double Taxation Relief Manual: Guidance by country: Canada: Withdrawals from Canadian RRSPs/RRIFs

No tax credit relief is allowable, which means that the full lump sum is taxable in both Canada and the UK. You can, however, claim Foreign Tax Credit Relief of up to 100% of the foreign tax deducted, against your UK tax liability.

Thank you.

Hi richard Snowden,

Any days that you are working in the UK, for a UK employer mean that you will be taxable on your earnings for those days. You are still entitled to personal allowances.  

You will have to pay UK National Insurance contributions on your UK earnings and your employer will see to that.  

We cannot comment on the requirements of the Spanish tax authorities. You would need to speak to your employer, the Spanish authorities or a financial adviser on that matter.

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.

Firstly in relation to question 1, you note your total rental income and take away any other allowable expenses. This leaves you with your net profit. You then deduct your personal allowance to leave your taxable income which we assume as 20%. Taxable income times 20% will leave you with a tax amount due. You then work out separately what 20% of your mortgage interest would be and reduce your tax bill by that amount.

For example, total rental income £20000 minus expenses of £5000 equals £15000, minus personal allowance of £12570 equals £2430 at 20% equals £486 tax due. Residential mortgage interest £1000 at 20% equals £200. Tax due, £486-£200 equals £286.

In regards to the previous year you will need to write in asking us to add the interest figure in SA105 box 44.

Thank you.