Hi HMRC, I have similar situation with John Schofield. I sold an overseas dwelling house and I will get full PRR.
May I know if I have to fill in the SA108 tax return? thanks
I have registered the SA1 and got the UTR last tax year(2021-2022). Also, I have already submitted the tax return.
This is my second tax year (2022023) in the UK.
Do I need to re-register the SA1 again if I have to fill my tax return this tax year?
or can I fill my tax reutrn without re-register the SA1 this year?
1. Could you please double confirm where should I fill in the REITS dividend from Hong Kong companies?
-On the SA108 and online return, the REITs, should be declared in the section 'income from land and property abroad'.
-Property Income Distributions should be entered in box 17 (other taxable income) on page TR3
2. This kind of dividends are taxable as profits of a UK property rental business. May I know what kind of allowance I can claim for?
Thank you for your reply. I have a follow up questions.
As you mentioned, "Property Income Distributions (PIDs) are taxed as income and not dividends."
I think it can been claim for Personal Allowance £12,570. May I know is there any other allowance which I can claim for? i.e. property allowance £1,000?
Refer to the above situation, I am entitled to tax relief of 15% on your USA dividends. I have £2,500 (Pre Tax) USA Dividends. There is 30% withholding tax in USA, so I got £1,750 in my account.
If I claim Foreign Tax Credit Relief(FTCR), I try to fill in the SA106 as below.
1. Page F1, box 2: input 375. (=£2,500 x 15%)
2. Page F2, 'Dividends from foreign companies',
-Column A: input USA
-Column B: input 2,500
-Column C: input 750 (=2500 x 30%)
-Column E: input X
-Column F: input 2,500
Please correct me if I am wrong. Thanks.
I would like to clarify how should I report the ‘scrip dividends’ and ‘bonus issues', and how HMRC tax on it. Please correct me if I wrong, thanks.
1: ‘scrip dividends’ in UK
1.1. If I received stock dividend instead of cash, the company will give me a dividend statement that shows ‘the appropriate amount in cash’ or ‘the cash equivalent of the share capital’. I put this figure in SA101, box 12.
1.2. This amount will be treated as income and taxable as saving income. I can enjoy the saving allowance (Personal Allowance, starting rate for savings, & Personal Savings Allowance)
2. ‘bonus issues' in UK
2.1. If I received bonus issues, refer to the SA101 note, I should put the amount of distribution received in SA101 box 13. However, where can I get the amount of distribution received?
2.2. Is this amount treated as income and taxable as saving income. Can I enjoy the saving allowance (Personal Allowance, starting rate for savings, & Personal Savings Allowance)
3. How can I report the ‘scrip dividends’ and ‘bonus issues' if I received from oversea?
I am UK tax resident. How you are taxed in the Hong Kong on dividend payments from Hong Kong listed REITs?
My REITS dividend income is less that £2,000 in last tax year.
There is no any withholding tax applied to the dividend payments from Hong Kong REITs.
1.What kind of this dividend should be classified? PID or non-PID? or does Foreign REITs dividend follow the different rule?
2. How can I fill in the tax return? Should I fill in the dividend income on
-SA100, TR 3, Box 4 or
-SA100, TR3, Box 17 or
-SA106, income from overseas sources
3. How do this kind of dividend to be taxed?
-I will be taxed based on the dividend income that exceeds the Dividend Allowance and your Personal Allowance. (Similar to the non PID), or
-I will be taxed 20% of the dividend. (Similar to the PID)
In Hong Kong, I am investing a multi asset fund, which combine Bond and Share. This fund distribute a monthly cash dividend to me. It is impossible for me to divide the monthly cash dividend into Bond and Share part.
Should I classified this monthly cash dividend as dividends or interests?
Also, I am investing a bond fund. This fund distribute the monthly cash dividend to me. Should I classified this monthly cash dividend as interests?
I have a similar situation with KN.
As you mention that if not claiming any Foreign Tax Credit Relief then just put details in the additional information section to confirm that the employment declared on SA102 is a foreign employer.
May I confirm where is the additional information section you mention? is it on the SA100 Page TR 7. Please correct me if I wrong.
I don't have a job in the UK. The only income for me is investing in the stock market. Last tax year, I made a profit on stock market so I think I have to pay for the Capital Gain Tax.
On HMRC website stated that:
-I only have to pay Capital Gains Tax on your total gains above an annual tax-free allowance.
-The Capital Gains tax-free allowance is £6,000.
If my profit on investment is £20,000,
my taxable gains on CGT is:
deduct the "profit (£20,000)" from "Capital Gains tax-free allowance(£6,000)"
=£20,000 - £6,000 = £14,000
If I pay basic rate Income Tax, so the tax rate is 10%.
This means I’ll pay £1,400 (=£14,000 x 10%) in Capital Gains Tax.
Even I have £12,570 unused personal allowances, I can't use the unused personal allowances against Capital Gains.
Please correct me if I am wrong.