HMRC Admin 19
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RE: Car wash expenses
Hi,
Expenses need to be wholly, necessarily and exclusively related to the performance of your duties. Car wash costs do not meet this criteria as they are not wholly necessary and as such no relief is due.
Thank you. -
RE: Gifting property abroad to my parents (non uk residents)
Hi,
Yes, capital gains may be due as this would be seen as a sale. You can see guidance here:
Capital Gains Tax: what you pay it on, rates and allowances
There is no tax implications for your parents.
Thank you. -
RE: Ceasing to be deemed domiciled: 7-year gift rule and inheritance tax
Hi,
HMRC cannot advise you on this as your residence is for you to determine based on the guidace available.
Thank you. -
RE: Last submission of Self Assessment
Hi,
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 Income Tax. You can see guidance here:
Tax on savings interest
Tax on dividends
You can see information on penalties here:
Self Assessment tax returns
Thank you. -
RE: About tax residency and self-assessment for foreign income
Hi,
Under the terms of the double taxation treaty, payment for employment carried out in Hong Kong is only taxable there and does not need to be declared in the UK.
Due to the date of arrival in the UK, a return is not required.
Thank you -
RE: Question on pension contributions on Self Assessment
Hi,
Yes, you will show these as payments to your company pension for further relief to be given now that your total income is in the higher rate bracket.
Thank you. -
RE: Inherited IRA Distribution
Hi,
The UK does not recognise the IRA systems as a pension scheme, even when tax relief is obtained from US tax on payments made into it.
The UK treats an IRA account as a savings account and payments from it are charged to UK tax as interest. As a UK resident, the IRA capital would count as part of your estate for Inheritance Tax purposes. You can see information here:
How Inheritance Tax works: thresholds, rules and allowances
Thank you. -
RE: QROPS 5 Year Tax Rule
Hi Michael Rose,
You would need to discuss this with the actual pension provider to see if it can be done. You can see further guidance here:
Transferring your pension
Thank you. -
RE: Foreign income: calculating tax relief
Hi,
The income will need to be converted to sterling and declared on a UK employment page and the foreign page, this does not double up the income. The Foreign Tax Credit Relief would also be claimed in sterling and cannot exceed the UK tax that would be due on the same source of income. You can see guidance here:
Relief for Foreign Tax Paid 2023 (HS263)
Thank you. -
RE: Expenses when working abroad
Hi,
If you have receipts, you can claim for actual amounts for food. You can see guidance here:
Claim tax relief for your job expenses
Thank you.