HMRC Admin 19 Response

Hi,

To provide a full reply we would require further information. We need clarification that the small building contractor is in fact the subcontractor for the developer and, or, client who ‘should be’ the ‘contractor’ but have failed to register for CIS.

It maybe that the developer/client/contractor is a deemed contractor who does not need to register for CIS. You can see information here:

CISR12050 - The Scheme: contractors: ‘deemed’ contractors

We also need to clarify if  the ‘small building contractor’ tendered for a project, and was successful, on a fixed price?

Thank you.
 

Hi,

As a UK resident, the sale of your flat in Poland may lead to a UK Capital Gains Tax charge. Please report any such transaction in the appropriate pages of your Self Assessment tax return.    You can see information here:   

Tax when you sell property

Thank you.

Hi,

Due to the complexity of your query you will need to write to HMRC for a detailed written response from a senior tax technician.                                                     

Contact HMRC

Thank you.

Hi,

Please refer to the following clarification of HMRC's position on foreign stock dividends:                                                                      

“Stock dividends”, if they are traditionally structured bonus issues, are neither dividends, since nothing leaves the company, nor capital reductions, but rather reflect a capital reconstruction. 

Stock dividends as defined in the legislation are treated as income by virtue of S1049 CTA10 and, where undertaken by UK resident company, are taxable as savings income under S409 to S414 CHAPTER 5, Part 4 ITTOIA05.

However, there is no equivalent charge for stock dividend income from a non-UK resident company. Furthermore, the charging provision for dividends from non-UK resident companies (‘overseas dividends’) is quite different from the charging provision for UK dividends and other distributions at section 383 ITTOIA 2005. Section 402 ITTOIA 2005 is narrower, for example it excludes ‘dividends of a capital nature’.

This means that to be charged to Income Tax under s402 ITTOIA, something described as a “stock dividend” by a non-UK resident company would need to be a dividend of an income nature. It is the company law mechanism of payment that determines whether the payment is a ‘dividend’ or not. This is set out in more detail by the Court of Appeal in HMRC v First Nationwide. This case determined that whether an issue of share capital by an overseas company is chargeable to UK income Tax, the primary question is whether the distribution is paid by a dividend mechanism. The dividend will only escape the charge to Income Tax if it is accompanied by a reduction in capital or paid in a liquidation. There is further guidance on the meaning of stock dividend below, and a specific comment on ‘Dividend Reinvestment Plans’.

CTM17005 - Distributions: stock dividends: introduction

Applying this to the question raised here it is necessary to look at the exact mechanism being used to achieve any sort of “stock dividend” by a foreign company. If the transaction in question is a true “bonus issue”, then a SCRIP dividend will not give rise to a charge under section 402, ITTOIA 2005 for the reasons set out above, nothing has left the company and there has been no capital reduction. However, where alternative methods are used, such as the DRIP scheme you note in your query, it is possible that a dividend chargeable under section 402 has been received, but it always depends on the exact mechanism used in the particular jurisdiction.

Thank you.
 

Hi,

If you say 'speak to an adviser' twice it will send you through to the webchat queue.

Thank you.

Hi,

You can apply for a UK certificate of residence by using our online service or by emailing the appropriate application form to HMRC. Full details are provided here: 

How to apply for a certificate of residence to claim tax relief abroad

Thank you.

Hi,

If you depart from, or arrive in the UK during a tax year, split year treatment, and the requirement to complete the SA109, may apply. You can see information here:                                   

RDRM12030 - Residence: The SRT: Split year treatment: When will split year treatment apply

Thank you.

Hi,

Yes, you can still claim for tax year 2021 to 2022. You will need to send a 2021 to 2022 Employer Payment Summary (EPS) with the employment allowance indicator set to 'Yes'. Once this has been submitted successfully, the credit should be applied to your account within 72 hours.

Should you need any assistance in sending the EPS, you should contact your payroll provider. 

Thank you.

Hi,

The relief you refer to is a relief alowed against Capital Gains Tax arising on the sale of a property, it is not available against income from letting a property. 

Thank you.

Hi,

You may want to confirm this with Pay Pal but if they are charging you a fee for a financial transaction it would generally be an exempt supply of finance and so would not be subject to the reverse charge

You can see guidance here:

VAT Notice 701/49: finance

Thank you.