Skip to main content

This is a new service – your feedback will help us to improve it.

  • RE: Government service and DTR

    Thanks but if you are resident but not UK domiciled then you do not necessarily need to report worldwide income. That depends on whether the remittance basis is being claimed. Please can you provide me with some guidance in respect of Article 18 of the UK-HK treaty. Is the income from the Hong Kong health department treated as received from the HK government and where can I find evidence of this please?
  • Government service and DTR

    I have been approached by a potential client who is on a secondment from Hong Kong for 12 months split over 2 UK tax years. They are likely to be resident in the UK under domestic law but also resident in HK and will probably fall to be treated as treaty resident in HK. I understand that the potential client holds a UK passport as well as a HK passport but has never lived in the UK until now and will return permanently to HK at the end of the 12 month period. Employment income is being received from the HK government, I understand, while the individual is here working as a doctor for the NHS. The individual thinks that the income received will not be taxable in the UK under Art 18 of the UK HK double tax treaty. I'm finding Art 18 pretty impenetrable but it seems to me that it says that the income can be taxed in both jurisdictions since the individual doesn't meet the conditions in subsection (b) and subsection (a) does not apply anyway. The other question is whether the income counts as government service at all and I can't find any guidance on this. I would be grateful for your help. Many thanks
  • Sale of non-UK patent

    My client is resident but not domiciled in the UK and is not yet subject to the remittance basis charge. He is the holder of several European patents which do not apply in the UK. We understand that royalties from these patents can be excluded from a charge to UK income tax as they are treated as foreign assets under S.275 TCGA 1992 . We also note that in the Capital Allowances Manual at CA75230, it states that royalties include the proceeds of sale of all or part of any patent rights. Are we therefore right in thinking that if the non-UK patent is sold and the proceeds not remitted to the UK, there is no charge to UK tax? Thank you