KF@2023

Dear HMRC, I would appreciate your guidance regarding the reporting of interest income on fixed deposits with auto-renewal terms for my self-assessment tax return: I understand that interest income from a fixed deposit must be reported upon maturity. However, in the case of a fixed deposit with a 12-month term that is set to auto-renew for another term, how should I report the interest income? Should I still report the interest for each annual maturity term, even though the profit cannot be realized due to the restrictions on withdrawal? Or, is it required to declare the interest only at the end of the final maturity period when the funds are fully accessible? Your advice on how to properly handle this situation in accordance with HMRC guidelines would be greatly appreciated. Thank you for your assistance

Dear HMRC, I am seeking clarification on how to report interest income for the following scenarios: Case 1: Interest Credited to a Joint Account: I opened a fixed deposit savings account in my name (a single account). Upon maturity, the bank transferred the total amount (principal + interest) into a joint account shared by my spouse and me. When filing a tax return, should I report 100% of the interest earnings, or should the amount be split equally (50% each) between the two account holders? Case 2: Interest Credited Monthly on a Fixed Deposit: I have a fixed deposit account with a 12-month term. The bank credits interest into my account on a monthly basis, even though the deposit has not yet reached maturity (I was told by the bank I am allowed to take the money away before maturity). In this case, how should I report the interest income? Should I declare the interest received monthly in the corresponding tax year, or wait until the deposit matures to report the total interest? Your guidance on these matters would be greatly appreciated to ensure compliance with HMRC regulations. Thanks

Dear HMRC, I began a savings plan 15 years ago with a Hong Kong-based insurance company. Over the term, I paid up all premiums. Upon the policy's maturity , I started to receive a maturity benefit as monthly installments for 120 months. Since each installment includes both premium and interest components, I am unable to clearly separate the principal from the earnings for reporting purposes. While reviewing the Policyholder Taxation Manual, I could not locate a specific example or formula applicable to my situation. In principle, the gain would likely be the amount paid out, minus the amount paid in. Since I know how total “premium sum” and “total maturity benefit sum”, is it okay to make a simple calculation like: benefit sum - premium sum (then divided by) total no. of installment = monthly gain (Note: The insurance company did not provide a certificate but an annual statement with installment details only). My concern is that I may inadvertently overpay taxes, given that I am still receiving these monthly payouts in years to come. Your advice would provide much-needed clarity and ease my concerns. Many thanks for helping.

Dear HMRC, I received my Hong Kong MPF payment recently. I noticed that there are two separate entries in my MPF final statement (Mandatory and Voluntary Contribution). I understand that I do not have to declare to HMRC my mandatory MPF which is derived from previous employment and is exempted from UK Tax (please correct me if I am wrong). How about the Voluntary contribution ? Do I need to report to HMRC amount received? And where to fill in my self assessment? Appreciate your guidance and help. Cheers

Dear HMRC, I bought a target saving insurance policy in HK years ago. It is now matured and I am entitled to a receive a monthly amount, (USD1000 each month) as maturity benefit. Since the benefit paid out is a lumpsum amount (principal+interest). Pls kindly advise how I should report my tax return. Thanks

Hi, after my tax turn submission, will HMRC notify me by email/mail to confirm whether I should pay tax for current year. In other words, how do I know my tax report status? Thanks for your help. Cheers

Dear Sir/Madam, No need to reply on this thread as I have got an answer already. Sorry to disturb you. Cheers

Dear Sir/Madam, Any feedback on the above? Since tax return deadline is approaching, would like to hear your guidance . Best regards and thanks.

Dear Sir/Madam, I needed to exchange USD to GBP so support my living expenses in UK. I used a stock trader platform to conduct currency exchange transactions then moved away money from trader platform to a local UK bank.Please kindly help clarify my queries on whether I need to report capital gain/loss for the said activities. Pls see my example below: My Situation: (Activity 1) I exchanged USD to get 100GBP at a trader platform on April 10, 2022, then: (Activity 2) I transferred out 20GBP to a UK bank on May 5, 2022 and got a profit “gain” of 3GBP, simply due to rise in USD value then; (Activity 3) I transferred out the remaining 80GBP to a UK bank on March 30, 2023 and recorded a profit “loss” of 10GBP, simply due to fall in USD value (To sum up my capital gain/loss over the entire 2022-23 tax year, I experienced a capital loss totaling 7GBP!) My queries: I cannot tell whether the above activities are subject to Capital Gain Tax, if yes, (A) How should I report the “realized gain”? By single entry transaction on exact date or by lump sum gains over the entire tax year ( have many transactions in a year at different dates)? And how should I report those losses? Can total gains be offset against total losses? (B) What is the charge rate in a low income tax band? Where should I report these figures on a tax return form? Appreciate your guidance and advice. Many thanks and cheers