Hi HMRC Admin I am both UK and other country tax resident I checked the tie-breaker rule in my applicable DTA, and I consider myself as resident of the other country for the purpose of the DTA. How should I fill in my tax return? Do I just complete from the angle that I am 'non UK resident'? Thanks! Best wishes,
Name removed admin .
Hi HMRC Admin
I just want to confirm my understanding after reading the HS263
Am I correct to say that if I am claiming the remittance basis and I am not remitting any of the foreign income or capital gain to the UK, I do not have any foreign tax credit relief as the foreign tax credit in the UK, as per HS263, is the lower of the
(1) foreign tax paid (or allowed by DTA) on income or capital gain
(2) UK tax liability on the income or the capital gain
Since I do not remit any of the foreign income or capital gain, I do not have any UK tax liability on the foreign income or the capital gain, hence my UK tax liability will be '£0', meaning that my foreign tax credit relief will also be '£0' as well.
Please kindly advise if my understanding of the above is correct, or if I have missed anything?
Hi HMRC Admin
I have gone through the tie-breaker rules in the UK/HK DTA, and I consider myself as dual resident (UK and HK), but claiming HK as my 'treaty residence for the purpose of the DTA.
My question is: Do I have to include the below income when filling out the HS302, as I find a statement in INTM154020 '...Income or a gain of a type which is dealt with in the agreement and which arises in the other State is always exempt from United Kingdom tax.' and just want to confirm my understanding when filling in the form?
- interest arising in HK, paid by a HK bank, and not remitted into the UK
- dividend income arising in HK, paid by a HK-resident company to my HK bank account, and not remitted into the UK
- residential property income in HK, not remitted into the UK
- director income in HK, not remitted into the UK
- business profits in HK, not remitted into the UK
Hi HMRC Admin
I am reading the INTM154020 - Double taxation agreements: residence: dual residents.
I came to the UK with the BNO visa. My kids came together with my wife but they are dependent on my wife's BNO visa. I do not have firm plans for the future yet but I am still staying in the UK as of Dec 2023 and have no plan to leave in the near future.
I am considering my case as both UK tax resident for the tax year 22/23 (stayed in UK for more than 183 days in 22/23) and HKSAR tax resident (condition 1.a.ii under the UK/HK Double Taxation Agreement and Protocol as I am a HK national and also ordinarily resides in HKSAR and stayed more than 300 days in 2 consecutive years of assessment one of which is the relevant year of assessment.) I have gone through the tie-breaker rules listed in the UK/HK DTA and Protocol, and I consider myself as HKSAR tax resident for the purpose of the DTA ('treaty residence') under the centre of vital interests'
I had both HKSAR and UK income in 22/23
- Employment income before I came to the UK
- Rental, Dividend, Interest, Director income throughout 22/23
- Employment income after I came to the UK
- Interest income (less than £10)
My question is
1. As I am considering HKSAR tax resident for the purpose of the DTA ('treaty resident'), does it mean that it will apply on all my UK and overseas income for 22/23. If yes, how do I report and pay my UK employment income as I have already paid PAYE? And do I need to report my overseas income (I am claiming split year treatment for 22/23 and I have not remitted any overseas income in the UK part of the split year)
2. I know that for 23/24, I won't meet the criteria to consider HKSAR as my 'treaty residence' as I no longer live in HKSAR more than 300 days for 2 consecutive years of assessment. Does that mean that for 23/24, I simply use the SRT to determine my UK residents and report tax as per the result accordingly? Or I have to formally to declare giving up the HKSAR 'treaty residence'?
3. What form do I need to claim the HKSAR 'treaty resident' status for 22/23? I saw a 'Double Taxation Treaty Relief' form in other thread, does it applicable for my case? If yes, I am filling out the online tax return using a third party software, and I do not see this form inside the platform, do I just attach this form together with my required submission?
4. I also see that under the 'Double Taxation Treaty Relief' Form, there is a space that I need the taxation authorities in the country of residence to sign and stamp the form. I am not sure if this is the service that will be offered by the HKSAR Inland Revenue Department (IRD) But I had already submitted a tax return to HK IRD and I have ongoing conversation with HKSAR IRD regarding this 22/23 tax return, does it provide sufficient evidence? (As far as I understand, HK follows a territorial basis of taxation and generally doesn't tax individual on foreign income and no tax on interest and dividends, hence these income, together with the UK employment income, are not listed on the tax return)
5. Is there any time limit for me to claim back the HKSAR 'treaty resident' status? e.g. four years from 22/23?
I would be grateful if you could help me with the case. Much appreciated!!!
Hi HMRC Admin I see that in SA109, Box 34 and 35, it asks me to fill in the nominated income or capital gains, does it have to be the same as the figures listed here in the SA106 (and also the SA108) form Please help! Many thanks! Best wishes,
Hi HMRC Admin This is my first time submitting the UK tax and I am claiming remittance basis, I have filled in the foreign income and foreign capital gains in SA106 and SA108 for my overseas income and gain. Do I have to repeat the same information here? Or when I claim for remittance basis, I should only report my overseas income and gain here in SA109, and exclude them in SA106 and SA108? Please advise. Many thanks! Best wishes,
Hi HMRC Admin I am reading the 'Residence, domicile, and the remittance basis guidance', and I see that in 12.6 '... To benefit from the terms of a DTA you must make a claim or application under the terms of the agreement.' Can I know what I need to do if I want to benefit from the UK/Hong Kong Double Taxation Agreement and Protocol? I am claiming 'Remittance basis' and I am filling out the Self Assessment Form, do I make any declaration or claim in the SA109? Many thanks! Best wishes,
Do I need to pay back the tax on all the unremitted foreign income or gains from years I claimed the remittance basis, after I become domiciled?
Hi HMRC Admin
Thanks - just want to be crystal clear as I am still confused by the heading,
I see that there are sections called 'remitted foreign savings income' and 'remitted foreign dividend income', but I also see there are sections called "interest and other income from overseas savings" and "dividend from foreign companies".
If I opt for a remittance basis and don't remit any overseas income to the UK, do I fill all these 4 sections as £0, or I should still report the actual income for both "interest and other income from overseas savings" and "dividend from foreign companies", and report £0 for 'remitted foreign savings income' and 'remitted foreign dividend income',
Hi HMRC Admin
Do I need to include the overseas income in the SA106 that I don't remit into the UK if I opt for the remittance basis?