HMRC Admin 25 Response

Hi Finlay R,
The individual will need to review the statutory residence guidance at RDR3 and take the statutory residence tests:
RDR3 Statutory Residence Test
To confirm whether they are considered to be resident in the UK for the whole tax year.
If they are, then then need to look at the guidance on split year treatment, to determine if this applies as well.
If split year treatment applies, then they need to complete form SA109 with their tax return to claim split year treatment.
They do not declare their overseas income in the tax return, other than as a free hand note in the additonal information box.
If split year treatment does not apply, they need to complete SA103 to declare their US earnings and if tax is deducted in the USA, they also need to complete SA106, to declare the tax.
All figures in the tax return are in pounds sterling only.
Thank you. 

Hi Goodsummer123,
We cannot comment on scenarios or calculations.
If the property was your main residence, you are able to claim Private Residence Relief for the number of months the property was your main residence, plus a further 9 months over the total number of month that you owned the property.
If the property was jointly owned between your husband and yourself, you will both need to work out if there is a capital gain on each of your 50% shares.
Please  have a look at the guidance on Private Residence Relief.
HS283 Private Residence Relief (2023).
The capital gains calculation must be in pounds sterling at every stage of the calculation.
You will need to use a just and reasonable exchange rate, in use at the time of the acquisition and again at the time of disposal.
For your convenience, you can use any of the rates here:
Exchange rates from HMRC in CSV and XML format
Or one of your own choosing, such as an international stock exchange rates.
The calculator here:
Work out your gain
Which will help you work out the gain.
The gain should be reported in a Self Assessment tax return individually by you and by you husband.
Thank you. 

Hi starstar,
Please refer to:
Tax on foreign income
Thank you. 

Hi ff9991,
When it comes to capital gains tax (CGT), UK-domiciled ETFs are treated the same way as other investments like stocks and shares.
Gains from the sale of these ETFs are subject to CGT, provided they exceed the annual exemption limit.
Dividends and interest distributions from UK-domiciled ETFs are also subject to income tax, with different rates depending on the investor’s tax bracket.
Thank you. 

 

Hi CapitalGainTax,
You only have 4 years from the end of the tax year in which the loss arises, to claim losses.
Unfortunately, you are too late to do this.
Please have a look at the guidance at CG15250:
CG15250 - Expenditure: incidental costs of acquisition and disposal
You would need to be able to provide evidence of your allowable fees in one format or another, if HMRC asked for this.
Thank you. 

Hi Zbls,
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 tax.
Further guidance can be found here:
Tax on savings interest
Inheritance tax is payable on the UK estate of the deceased, if they are not resident in the UK and their world-wide estate if they are UK resident.
The cash gift will not have UK Inheritance Tax implications, but there could be something of this nature in Malta for your friend.
Thank you. 


 

Hi Pansartax,
Please refer to:
Capital Gains Tax: what you pay it on, rates and allowances
Report and pay your Capital Gains Tax
Thank you. 

 

Hi John TheKind,
1. As claiming the remittance basis and the income is not remitted to the UK, this doesnt need to be declared. see guidance here:
Paying tax on the remittance basis (Self Assessment helpsheet HS264)
2. It will be UK interest/dividends.
Thnak you.
 

Hi LEE PORTER,
Please refer to guidance here:
HS286 Negligible value claims and Income Tax losses on disposals of shares you have subscribed for in qualifying trading companies (2023)
Thank you. 

Hi Savio Ng,
You are required to register the company with Companies House, once this has been done Companies House will inform HMRC who will set up a Corporation Tax record and issue a Unique Taxpayers Reference.
Once you have received this you can advise HMRC that the company is a Flat Management Company and request Dormancy which will exclude your company from the obligation to submit tax returns.
Thank you.