Je77 Jones

Hi HMRC Admin, From 6 April 2025 a four-year grace period will be given to all individuals if they wish to claim it, who have not been UK resident in the 10 tax years immediately prior to becoming UK resident. I entered into the UK in mid July 2024 under the BN(O) scheme. My main source of income is saving interest from local UK banks and overseas banks (including those with head offices in Isle of Man and Jersey Island). I would like to seek your clarifications on the following issues: (1) Will I need to pay for UK tax on foreign saving interest and gains for 2024/25 financial year despite I have been a non-UK tax resident for the previous 10 years prior to my arrival in UK (in mid July 2024)? (2) Will I be allowed to not paying UK tax for foreign saving interest and gains for 2025/26, 2026/27 and 2027/28 (the remaining 3 years of the first 4-year tax residence)? (3) For saving interest paid in GBP from banks in Isle of Man and Jersey Island, will I be obliged to pay UK tax on this foreign saving interest for 2024/25 and onwards? (4) For saving interest paid in other currencies (example USD or EUR) from banks in Isle of Man and Jersey Island, will I be allowed to not paying UK tax for foreign saving interest for 2025/26 to 2027/28 (the remaining 3 years of the first 4-year tax residence)? Thank you for your feedback.

Dear HMRC Admin 25, Thank you for your reply. May be I should rephrase my question with the following example: Before 6/4/2024, I had never lived in UK. I had cash holding of HKD 1 M, USD 0.2 M, GBP 0.3 M and other currencies for travelling. I will arrived in UK on 16/7/2024. Between 6/4/2024 and 15/7/2024, I convert some HKD into USD and GBP. After I arrive UK on 16/7/2024, I convert also some more HKD to GBP, and some USD to GBP. I will have cash holding of less than 1 M HKD, less than 0.2 M USD and more than 0.3 M GBP. The aim is to convert other currencies into GBP (as the base currency) for UK living. I stay in UK from 16/7/2024 for the rest of the financial year (more than 183 days) in a permanent location. It appears that I am a resident in the UK for the tax year. As mentioned above, I am planning to convert other currencies in GBP for UK living. Since there are fluctuations in the currencies market, to ascertain whether there is any "capital gain" or "capital loss" arising from currencies conversion, will I need to take a snapshot of the holding position at 6/4/2024 (HKD 1M, USD 0.2M and GBP 0.3 M) converted them into GBP (using UK's official rate) and compare the equivalent GBP cash holding position at 5/4/2025 to work out the "gain" or "loss" for considering tax implication? Thank you for your advice. Jones. I have been granted entry clearance to the UK under the BN(O) Visa scheme. I am planning to arrive UK a couple of months from now. Currently, I have money holdings in HKD, USD, EURO and GBP. I will convert some of my holdings into GBP before and after my arrival in the UK. The aforementioned foreign exchange conversion is not for trading purposes.

Dear HMRC Administrator, I have been granted entry clearance to the UK under the BN(O) Visa scheme. I am planning to arrive UK a couple of months from now. Currently, I have money holdings in HKD, USD, EURO and GBP. I will convert some of my holdings into GBP before and after my arrival in the UK. The aforementioned foreign exchange conversion is not for trading purposes. There would certainly be price fluctuation in the currency market. I wonder if I need to keep track of all currency exchange transactions and report the gain/loss for taxation purposes for relevant financial years? Thank you for your advice. Regards, Jones.

Dear HMRC Admin5, If my income solely comes from interest earned (no pension, no dividend, no capital gain), at what level shall I need to pay tax when interest received exceeding (a) GBP12,570, (b) GBP17,570 or (c) GBP18,570? Thank you. Jones

Hi HMRC Admin 25, Following the above advice, does that imply we can pick the exchange rate within the tax year which is the most favourable to the taxpayer (i.e. the lowest GBP rate to foreign currency during the tax year)? Thanks.

Hi HMRC Admin 25, With the announcement of Spring Budget 2024, ending of the current rules for non-UK domiciled individuals will take effect from April 2025. As I plan to move to UK under the BNO(VISA) scheme in 2024/2025, being a non-dom, is it the case that I will need to pay personal income tax for income earned outside UK during 2024/2025? However, for 2025/2026 to 2027/2028 (the remaining 3 years of the 4-year period), I will not need to pay tax on my overseas income if I have my nonb-dom status (with no personal allowance and capital gain allowance entitled in UK). Is this correct? Thanks. Jones. The government is introducing a new residence-based regime taking effect from April 2025. This is the latest modernisation of the non-dom regime, following the government’s 2017 reforms which abolished permanent non-dom status. The government’s new approach will ensure we remain internationally competitive and attract the best international talent. New arrivals to the UK will benefit from 100 per cent UK tax relief on foreign income and gains for the first four years that they are tax resident here, and there will be transitional arrangement in place for current non-doms. Those who have established ties with the UK and benefit from our public services should contribute accordingly. Therefore, under the new system anyone who has been tax resident in the UK for more than four years will pay UK tax on any foreign income and gains, as is the case for other UK residents.

Dear HMRC Admin 25, For clarification, if my pension income in Hong Kong is equivalent to GBP 30K and have paid tax in Hong Kong, my overseas interest income is GBP 25K, will the taxable income in UK be GBP 25K - 12.57K (less personal allowance) = GBP 12.43 at basic rate of 20%? Thanks.

Hi HMRC Administrator, I received monthly pension payment arising from the past employment in Hong Kong. I live in UK. I have to pay tax in Hong Kong for this pension income. Under the double taxation agreement between UK and HK, I have to pay tax for this pension income in Hong Kong. (1) Do I need to report this pension income in UK? (2) If I receive overseas interest from bank saving which is exempted from tax in that place, do I need to report this interest income in UK? If I need to report, can I use the UK personal allowance to calculate my taxable income for UK tax?