Thank you for your response.
My query was specifically in context of my intention to file as a non domicile tax payer under the REMITTANCE BASIS.
I understand that any remittance into the UK is liable to UK tax except old previous savings / assets that were owned prior to becoming a tax resident. I am also aware that interest or income arising from these assets after becoming a tax resident are taxable upon remittance into the UK
However my query was regarding my old savings which I owned prior to becoming a tax resident in the UK. A lot of these are in the form of bank deposits which will mature only in 2023 or 24 which I want to remit to UK after they mature. I understand that since these are old savings these will not be liable to tax upon remittance into the UK in the future (say 2023 or 2024).
My question is how to I ensure that these funds remain isolated? My bank can arrange to transfer the principle amount to a new bank account that these funds remain clean while any interest arising from these deposits can be transferred to an existing bank account (mixed funds). Please confirm if my understanding is correct. And if so what kind of documentation or evidence will I need to provide to HMRC to prove that these are old savings prior to becoming a tax resident in the UK?
I have recently become a tax resident of UK and I will be filing my returns under the Tax Resident Non domicile status remittance basis.
I understand that any savings prior to becoming a tax resident in the UK are not taxable upon remittance to the UK.
My specific query is about is about bank fixed deposits in my overseas country which we made before I became a tax resident in the UK. I understand that this principle amount is not taxable upon remittance to the UK (since these are my original savings). However a lot of these deposits will mature only in 2024 - 26.
My overseas bank has suggested that they can transfer the principle (original amount) to a completely new bank account (clean fund ) receiving only amounts that were my savings before I became a tax resident. The interest will continue to be credited to my existing savings account (mixed funds). This will allow my to segregate my old savings from the new interest earned from the deposits. I intent to remit the original savings (principle amount) back to the UK and I understand that these will not be taxed since there are my old savings before I become a tax resident.
My question is what documents will I need to provide to HMRC upon remittance in 2024 to prove that these funds are from my original savings? I will not be remitting any interest earned from these deposits after 5th April 2022.
I have recently moved to the UK. I understand that previous savings (capital) can be brought into UK without any tax implication. I have a situation where I have bank deposits which will mature during the year. I understand that the income from these deposits is taxable but the initial capital itself is not.
Hence I plan to open a new account with the bank and instructed the bank to move the capital to a new bank account in order to separate the interest from the capital. Will this be adequate to provide clarity to HMRC? Any other documentation needs to be maintained? I want to make sure that the required evidence is in place before I move any capital
Thank you for your response. I have done this and now have an 8 digit govt gateway ID.
However to proceed further I am required to provide details of 2 of the following; UK passport, driving licence or credit ref questions. I have none :-)
I have tried calling the help line number without success. How do I proceed from here?
I have recently moved to UK and will become a tax resident in this year. I am currently unemployed and intent to file by taxes as a non dom on remittance basis.
How do I register and let HMRC know that I am now a resident. I look at the doc 'Register for Self Assessment' but it refers to 3 scenarios only; Self Employed, Not self Employed, Partner or partnership. What would be the process for someone like me who is unemployed but will remitting funds from overseas.
I will moving for UK shortly and intend to file my returns as a non dom
My question is related to the transfer of my previous earnings into UK. Since I will be filing my returns on remittance basis, how will the transfer of my previous savings be treated? The complexity is on account of my savings deposits maturing during the year and the savings and interest will be credited to the same account. Hence what kind of evidence will be required to show the separation between the savings and interest?
I will be a tax resident in this tax year (2022 - 23). I have never been a tax resident in the UK
I intend to fill my returns as a non dom on remittance basis. As a non dom filling on remitance basis, what is the tax impact if I remit my previous savings into UK? Is tax liability limited to remitances related to new foreign earnings in the tax year or is tax payable on remitance of prevoius saving also? Here I am referring to my savings in a foreign country which were earned before I became a tax resident in the UK
Thank you for your response. However I cannot see the relevance of the response to the query itself. I have mentioned hte query once again below and look forward to a clarification.
I have not been a tax resident of UK but i will become a tax resident now. I understand my earning / savings prior to becoming a resident in the UK are not liable to tax (I am aware that any income arising from the savings is taxable). I intend to leave my savings in my previous country of residence until further notice.
My specific query is as follows:
When I move my savings to UK in the future, how will I prove that the source of the monies is my previous savings? What kind of documentation do I need to keep and present to HMRC in the event I need to prove that the amount transferred to UK is from my savings before I became a tax resident of the UK?
I have already spoken to the bank. However they are not able to comment on the tax related issue.
My query is limited to the principle amount which is related to my savings before I become a resident. While I know it is not taxable, what documents do I need to maintain in case I need to prove that this amount relates to my previous saving before I became a tax resident. How will I say prove that this amount was earned before I became a tax resident if I move it to UK in the future?
My query may not have been understood.
I'm aware of the tax implications of any income generated in a foreign territory. My query was specifically around moving my savings from my previous country of residence after I become a resident in UK. In the event I move my old savings from my current country of residence say 2 years later, what kind of documentation or proof would I need to maintain to demonstrate that the funds transferred to UK were from my previous savings. Do I need to maintain records of my bank account statements? And do these statements need to be stamped by the Banks. I would like to complete all required documents in my current country of residence before I move to the UK