HMRC Admin 25

Hi Phy,
Article 10 of the UK / Hong Kong tax treaty:
https://assets.publishing.service.gov.uk/media/5a80481840f0b62302692963/hong-kong-uk-dta_-_in_force.pdf
Allows for you to claim up to 15% foreign tax credit on the tax deducted from the shares.  In the foreign section of your online tax return, you declare the foreign dividend received from Hong Kong (HKG) and the tax deducted from it.  The online return can work out the foreign tax credit for you.

 

Hi Contracting,
Yes, you can start your business before you register.
You can register as a sole trader here:
Register as a sole trader
A tax return will be required for the tax year in which you commenced your trade.
Thank you. 

Hi flora,
Please have a look at the guidance here:
Selling online and paying taxes - information sheet
If you are selling as a trade but resident in Spain, then you would need to consider your tax implications in Spain.
The profits from trading would not be taxable in the UK.
Thank you. 

 

Hi Musab,
This money arose in tax years that you were not tax resident in the UK.
For this reason, it is treated as capital and not income and is not taxable should you bring it to the UK.
Any interest that the capital generates will be taxable.
Thank you. 

Hi J G,
Please have a look at the guidance here:
Business records if you're self-employed
It tells you what records you need to keep.
How you keep them is up to you, but you need to ensure that they are accurate.
You can use your persoanl bank account for yoru business, but you will need to be able to separate business and personal transactions.
You will also need to keep your records for at least 5 years after the 31 January submission deadline for the tax year.
Example - If you sent your 2022 to 2023 tax return online by 31 January 2024, you must keep your records until at least the end of January 2029.
Thank you. 

Hi DaveCr,
HMRC cannot advise you on this as your residence is for you to determine based on the guidance available.
Thank you. 

Hi Carolaj,
It is based on the value.
You will need to have a value of the flat at time of purchase in order to work out the gain on the dance studio in order to report it.
For declaring any gain, it will still be the full gain and then you apply for deferred consideration as not all the funds are received at point of sale - CG14850 - Deferred consideration: introduction
Thank you. 

Hi crowman,
There is no legislative definition of a lump sum but HMRC regards these as being any non-periodic payment of a pension.
That is, any non-regular payment that decreases the value of the remaining pension pot after such payment is made.
For example, the first (IRA) withdrawal is taken in year 1, the next withdrawal was made in year 5, and another withdrawal in year 7; such payments will not be regarded as periodic and will be treated as Lump Sum’s under the UK/USA DTA.
Whereas any amount withdrawn in set, periodic, frequent intervals (e.g. weekly, monthly, annually etc.) would not be a Lump Sum, but rather periodic payments.
Periodic, frequent, payments or withdrawals (e.g. weekly, monthly, annually etc.), then those payments would have been taxable within the UK and ‘maybe’ exempt from US tax.
This is in accordance with Article 17(1)(a) of the DTA which, again from the perspective of a UK resident, states:  
‘Pensions and other similar remuneration beneficially owned by a resident of a Contracting State [UK]shall be taxable only in that State [UK].’   
As a result, these periodic payments are fully taxable in the UK and should be declared to HMRC on the Foreign Income pages (SA106) of a Self-Assessment return.
If US tax has also been paid on those payments, then it is important to note that no UK tax relief can be claimed to offset that US tax charge against any UK tax due
 Instead, you must approach the US Internal Revenue Service (IRS) to claim US tax relief and the type of US tax relief available will differ depending on whether or not you are a US Citizen.  
Article 17(2) of the UK/USA DTA provides the US with the right to tax any Lump Sum payment which is made from a US sourced pension scheme (including IRAs).
However, the UK is also permitted to tax the same lump sum payment(s), which is in accordance with Article 1(4) of the DTA .
Thank you. 

Hi Dave,
Please refer to guidance here:
HS281 Capital Gains Tax civil partners and spouses (2024)
Thank you. 

Hi Anna987,
HMRC cannot comment on future events as legislation may change.
For current guidance please refer to:
Tax on your UK income if you live abroad
Thank you.