HMRC Admin 25
-
RE:Split year treatment
Hi wk yeung,
If you qualify for split year then you only report any foreign income for the UK part of the year:
RDRM12000 - Residence: The SRT: Split year treatment: Contents
If you do not qualify then you will need to report all your foreign income to the UK:
Tax on foreign income
The guidance at RDRM12150 at www.gov.uk will help you work out if split year treatment applies.
For your income from Hong Kong, under the terms of the double taxation treaty, as the work was done there, it is only taxable there so you don't need to declare.
Your residence is for you to determine based on the guidance available.
Thank you.
-
RE:Pension under CIS
Hi Kevin Hester,
Yes,you will claim the relief through your tax return at the reliefs section under - Payments to a retirement annuity contract where basic
rate tax relief will not be claimed by your provider.
Thank you. -
RE: Foreign Capital Gain
Hi Matt
If you don't already complete a tax return, you can report it using the real time service.
Report and pay your Capital Gains Tax
Thank you. -
RE: Definition of non-residential land
Hi Rob Phipps,
The definition of residential property for the purposes of TCGA para 2 is taken from the Non-Resident CGT A disposal of a residential property can apply if;
The land has at any time in the relevant ownership period consisted of or included a dwelling, or
The interest in UK land subsists for the benefit of land that has at any time in the relevant ownership period consisted of or included a dwelling, or
The interest in UK land subsists under a contract for an off plan purchase (a contract for acquisition of land that at some point shall involve a dwelling). If the land you are selling doesnt meet all the criteria above then it is non residential and would qualify for the 10/20% rate.
Thank you. -
RE:Declaring Foreign Bank Interest Income after HMRC have said no longer need to send SAR
Hi Paul Weller,
As this would be a change in circumstances, you now meet the criteria for a tax return.
If you complete online, you can do this after 6/4/24.
If you file by paper, you should contact HMRC to have your record updated to ensure the return for 23/24 is issued on time.
Thank you.
-
RE:Private residence relief
Hi Anne Perceval,
Where an individual acquires a second property or more, they have 4 years, in which to advise HMRC which property will be treated as their main residence for capital gains purposes.
Where there is no notification in the permitted time period, then HMRC will make a decision on the main residence, based soley on the facts of the case.
This does not prevent you from claiming Private Residence Relief and your Capital Gains Tax calculation.
Should HMRC make an enquiry into your tax return, they may agree your claim or reject it, depending on the facts of your case.
Thank you.
-
RE:Money transfer from parent before arriving the UK
Hi AMTAX,
There are no tax implications on the giving or receipt of cash gifts, but you may wish to speak to inheritance tax regarding any inheritance tax implications.
Inheritance Tax: general enquiries
You may also want to review the guidance here:
How Inheritance Tax works: thresholds, rules and allowances
Thank you.
-
RE:Tax treated as paid on distributions received by non-UK resident persons
Hi Spencer Lewis,
If you are non resident and you are in receipt of UK dividend and savings income, your total tax liability is calculated using disregared income. Please refer to guidance here:
Tax on your UK income if you live abroad
Thank you. -
Does invsting on the financial markets count as 'bank interest and/or dividends'?
Hi joe,
If a friend or family member or anyone else for that matter, gifts you cash, whether they are resident in the UK or not, that gift is not taxable in the UK.
If that gift then generates interest or dividends in the tax year it is given, then the interest and dividends may result in tax being payable on the dividends or interest.
Gift that are not cash in nature, such as shares, jewellery, paintings, antiques, coins and stamps or sets of things, just to name a few, will be subject to Capital Gains Tax if the recipient disposes of them.
If the giver is resident in the UK, they also would be liable to Capital Gains Tax on their disposal of the gift.
Capital Gains Tax on personal possessions
Thank you. -
RE:Do I need to pay tax in UK if I cash out the withheld earning amount that I earned in country A
Hi Friendly_Resist824,
Perhaps yes, perhaps no.
You would need to look at your residence status in the tax year that you arrive in the United Kingdom.
Depending on the outcome of the residence tests, you may need to declare your overseas income and claim a foreign tax credit against any foreign tax paid.
Split year treatment may apply, in which you would only declare your UK and worldwide income from the date your arrived in the UK.
Guidance on the statutory residence tests can be found here:
RDR3 Statutory Residence Test
Tax on foreign income
Thank you.