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  • RE: Tax on currency exchange

    Dear HMRC, thank you for your reply. Best regards
  • RE: Tax on currency exchange

    Dear HMRC, Thank you for your information. For example, based on my background given in my post, if I exchanged $1000 US dollars (which is already exist before 6 April 2021) to Hong Kong dollars in May 2021, I got $7,800 Hong Kong dollars (the equivalent Sterling is £780 calculated using the prevailing exchange rate). If I exchange the $7,800 Hong Kong dollars in June 2021 to Sterling, I got £790. Am I correct that I need to pay tax on this £10 (i.e., £790 - £780) gain? Your help is much appreciated. Best regards
  • RE: Split Year Treatment: Determination of split day for UK part

    Dear HMRC, Thank you for your reply and clarification. Therefore, the UK part of the tax year 21/22 is started on 21 May 2021. Please correct me if I am wrong. Best regards.
  • Tax on currency exchange

    I have a question on the currency exchange in my brokerage account. My background is: I moved to UK in May 2021 from Hong Kong. I were not a UK tax resident and had no tie with UK in any year before moving the UK. I am a tax resident in 21/22. The timeline: 1. On or before 5 April 2021: I had $A US dollars in my brokerage account in Hong Kong. Other than this $A US dollars, I had no stock or other investment in the brokerage account. 2. In May 2021: I moved to the UK. The balance of my brokerage account in Hong Kong remains $A US dollars i.e., no growth. 3. In June 2021: I exchanged the $A US dollars to $B Hong Kong dollars within the brokerage account. As my brokerage account in Hong Kong is linked to my bank account (Hong Kong dollars) in Hong Kong, I need to exchange the US dollars back to Hong Kong dollars if I want to use it. My question: 1. Is there any tax implication on the currency exchange from $A US dollars to $B Hong Kong dollars (item 3 above)? 2. Is there any tax implication if I exchange the $B Hong Kong dollars to $C Stering later for my use in the UK? Thanks
  • RE: Split Year Treatment: Determination of split day for UK part

    Sorry Admin, here is the re-formatted version for easy reading I have a question on the determination of split day for Split Year Treatment. I moved to UK in May 2021 from Hong Kong. I were not a UK tax resident and had no tie with UK in any year before moving the UK. I am a tax resident in 21/22. The timeline of moving to UK is given as below: Hong Kong Side 1. 16 May 2021: I signed a tenancy agreement (the tenant side) to rent an apartment in the UK. The tenancy agreement commencement date is 3 June 2021 and the expiry date is 2 June 2022. The landlord did not sign the tenancy agreement (the landlord side) on the same day but signed on 21 May 2021. UK Side 2. 21 May 2021: I arrived in the UK 3. 21 May 2021: The landlord signed the tenancy agreement (the landlord side) 4. 21 May 2021 to 6 June 2021: As the commencement date of the tenancy agreement is 3 June 2021, I stayed at a temporary accommodation (booked from Airbnb) during this period. During this period, I ordered furniture, bed, kitchenware, etc. to prepare to start my home in the UK. 5. 3 June 2021: I checked in the apartment. This is the day I started to have my only home in the UK. 6. 6 June 2021: I moved out from Airbnb apartment and moved in the apartment. If I apply the Split Year Treatment, is the ‘UK part’ started on 3 June 2021? Ie., I have to pay UK tax on or after 3 June 2021. Thanks
  • Split Year Treatment: Determination of split day for UK part

    I have a question on the determination of split day for Split Year Treatment. I moved to UK in May 2021 from Hong Kong. I were not a UK tax resident and had no tie with UK in any year before moving the UK. I am a tax resident in 21/22. The timeline of moving to UK is given as below: Hong Kong Side 
    1. 16 May 2021: I signed a tenancy agreement (the tenant side) to rent an apartment in the UK. The tenancy agreement commencement date is 3 June 2021 and the expiry date is 2 June 2022. The landlord did not sign the tenancy agreement (the landlord side) on the same day but signed on 21 May 2021. UK Side 
    2. 21 May 2021: I arrived in the UK 3. 21 May 2021: The landlord signed the tenancy agreement (the landlord side) 4. 21 May 2021 to 6 June 2021: As the commencement date of the tenancy agreement is 3 June 2021, I stayed at a temporary accommodation (booked from Airbnb) during this period. During this period, I ordered furniture, bed, kitchenware, etc. to prepare to start my home in the UK. 5. 3 June 2021: I checked in the apartment. This is the day I started to have my only home in the UK. 6. 6 June 2021: I moved out from Airbnb apartment and moved in the apartment. If I apply the Split Year Treatment, is the ‘UK part’ started on 3 June 2021? Ie., I have to pay UK tax on or after 3 June 2021. Thanks