taxqueries2024

Hello HMRC guidance at RDRM32250 makes clear that “… a person may be resident in the UK under UK law, but regarded as ‘treaty resident’ elsewhere and consequently treated for tax purposes as ‘not resident’ in the UK.” HMRC guidance at INTM154020 makes clear that “An individual who is ‘treaty resident’ in the other country is entitled to make claims to relief from United Kingdom tax as provided for under the agreement on the basis that they are a `resident of’ the other State. As a result: Income or a gain of a type which is dealt with in the agreement and which arises in the other State is always exempt from United Kingdom tax.” ———— If an individual is treaty non-resident in the UK (and therefore non-UK resident for tax purposes), and has NO UK income, please confirm, 1. As the guidance makes clear that any income arising outside the UK is always exempt from UK tax, and the individual has NO income arising in the UK, that he has no UK tax liability and therefore has no obligation to notify chargeability and/or file a UK return. 2. As a return is not required, a HS302 form is not required either as all of his income is exempt from UK tax and so relief does not have to be claimed (see HS263). Thank you.

Hello I understand that the SRT is the first port of call as to whether someone is UK resident for tax purposes. However, if the person is also resident in another country, and the DTA tiebreaker test in article 4 determines that ultimately the person is resident in the OTHER country, is the person then deemed to be non-UK resident for tax purposes as a result?

Where you have said “If …an individual with no UK income is deemed non-resident” ; can you please confirm that a person will be deemed non-resident if the treaty tiebreaker deems them to be resident in the OTHER country, ie treaty non resident. Thank you.

Would it not come under Business Profits? Could you kindly please explain why would it be classed as Other Income? Thank you.

Hello. Scenario: a person was UK resident through one of the SRTs, and also resident (and domiciled) in another country. The person has income only from that other country. The person has no UK income. If the DTA in place between those two countries ultimately (through the tie breaker tests) determines them to be resident in the OTHER country and NOT the UK, do they need to file a UK tax return? Does the DTA override the SRT? Thank you.

Hello. I am looking for help with how a person who is dual-resident (in the UK and Canada) would declare income from the sale of Cryptocurrency assets on their UK self-assessment tax return. The income is treated as a trade due to the frequency and nature of the transactions. The disposals are chargeable to income tax in Canada, NOT capital gains tax. Can you please advise which article of the UK-CANADA Double Taxation Agreement (DTA) this income would fall under? Thank you.