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  • RE: Earning Savings Interest Whilst Overseas

    Thank you for your help. When I completed the “Check if you need to send a Self Assessment tax return” questionnaire on the Gov.UK website I answered “Yes, I got more than £10,000 from savings and investments” to the Question “Did you get more than £10,000 from dividends or savings and investments?” - I was then informed that I would need to complete a self assessment tax return. Is this only the case for UK residents and not applicable to non UK residents?
  • Case 3 (Split Year)

    I have a question regarding one of the requirements to be eligible for split-year treatment under Case 3 ("Ceasing to have a home in the UK"): “From the point the individual ceases to have a home in the UK they must spend fewer than 16 days in the UK”. (1) Can an individual spend these 16 days in the UK at either a friend's or family member's home or would doing so breach the requirement to “cease to have any home in the UK for the rest of the tax year.”? (2) Is a “day” for the purposes of “must spend fewer than 16 days in the UK” considered a day of UK presence if an individual is in the UK at midnight or does spending anytime in the UK on that day count?
  • Second Automatic UK Test

    I have a question on behalf of my friend regarding the third and final requirement to meet the "second automatic UK test": (1) there is or was at least one period of 91 consecutive days when you had a home in the UK, (2) at least 30 of these 91 days fall in the tax year when you have a home in the UK and you’ve been present in that home for at least 30 days at any time during the year, and (3) at that time you had no overseas home, or if you had an overseas home, you were present in it for fewer than 30 days in the tax year". My friend is a UK non-domicile that moved from Singapore to the UK in October 2021 (during the 2021/22 tax year). Before moving to the UK (i.e. from 6th April 2021 to her arrival date in the UK in October 2021) my friend spent more than 30 days in an "overseas home" during the tax year - I would like to understand if this means that my friend would fail to meet the third requirement of the second automatic UK test above. Does “at that time” in the third requirement above refer to: 

(a) the whole of the tax year in question, or (c) the whole period that the individual has a home in the UK within the tax year in question, or (b) the whole 91 consecutive day period used to satisfy the first requirement of the second automatic UK test above.
  • RE: Split Year Treatment (Case's 8 & 3)

    Thank you for your response - I am still unsure as to whether Case 3 or Case 8 would take priority in this scenario. This following link explains what case takes priority within the group of Case's 1-3 and within the group of Case's 4-8 group but it does not provide clarity on whether any priority order exists between the cases across the two groups (which is relevant in my friend's situation, as either Case 3 or Case 8 could be applied, but one of them needs to take priority as both of them cannot be applied together). https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm12030 Would you be happy to provide a view on whether Case 3 or Case 8 would be prioritised in this scenario please?
  • RE: Departing UK (P85 and/or Self Assessment Tax Return)

    Thank you for your response - I will submit both the P85 form upon departure from the UK as well as the tax return for the 2022/23 tax year when I am able to on or after 6th April 2023.
  • RE: Reporting Capital Gain

    Thank you for your quick response - I appreciate the confirmation.
  • RE: Moving Overseas

    Thank you for your response. The clarification of the accommodation tie is helpful but I understand that I would only be required to assess my ties (including an accommodation tie) if I do not meet any of the automatic tests (for either overseas or UK). My intention is to meet the third automatic overseas test (and therefore not need to take any ties into account). One of the requirements for the third automatic overseas test is that "you spend fewer than 91 days in the UK in the tax year" - I would like to clarify if there is any restriction on where I can spend these days in the UK - I cannot see any reference to any limitation(s) within the HMRC Manuals.
  • RE: Earning Savings Interest Whilst Overseas

    Thank you for your response. Just a few follow-up questions: (1) I read on the Gov.UK website (https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return) that "you may need to send one [a self assessment tax return] if you have any other untaxed income, such as: some COVID-19 grant or support payments, money from renting out a, property, tips and commission, income from savings, investments and dividends, foreign income". I presume the untaxed interest that I will earn on savings in a bank account in the UK would be classed as "income from savings, investments and dividends". Is this not the case? (2) I also read on the Gov.UK website that "the tax charge for non-residents on investment income arising in the UK is restricted to the amount of tax, if any, deducted at source.". Given no tax is deducted at source does this mean that I am not liable to pay UK tax on any investment income (including untaxed interest that I will earn on savings in a bank account in the UK) whilst a non-resident regardless of how much I earn? (3) I also read on the Gov.UK website that "With the exception of income from property in the UK and investment income connected to a trade in the UK through a permanent establishment, the tax charge for non-residents on investment income arising in the UK is restricted to the amount of tax, if any, deducted at source. If the tax charge is limited in this way, personal allowances will not be given against other income. This restriction does not apply in the overseas part of a split year.". Are you able to let me know what "personal allowances will not be given against other income" means please?
  • Moving Overseas

    I will be leaving the UK this tax year to work full-time overseas in Singapore. I will become a non resident in the UK for the overseas part of this tax year (due to split year treatment under Case 1 - "Starting full-time work overseas") and each subsequent tax year that I remain overseas by meeting the third automatic overseas test (i.e. "working full time overseas"). I understand that I need to meet the following requirements to meet the third automatic overseas test: (1) you spend fewer than 91 days in the UK in the tax year, (2) the number of days on which you work for more than 3 hours in the UK is less than 31, and (3) there is no significant break from your overseas work. Are there any restrictions in regard to where I can stay (i.e. accommodation) whilst I am in the UK for up to 90 days each tax year (i.e. close family member's home)?
  • Reporting Capital Gain

    Would a tax resident in the UK be required to report a capital gain made (via a self assessment tax return or otherwise) on the sale of an overseas property if the total amount of the gain is less than the Annual Exempt Amount in the relevant tax year?