My husband earn income in HK. It was pay into his HK bank account, and he will pay his HK tax.
He then transfer those among to my HK bank account. Then I transfer them to my UK bank account.
We want to apply for Split year for Remittance Basis
Does that count as MY remittances? Or HIS remittance?
I hope this message finds you well. I am writing to seek clarification regarding the remittance basis and its associated ordering rules. I am currently in the process of completing the SA109 form for remittance basis application and split year treatment. I understand that the ordering rule for mixed funds requires calculations to be done in a specific sequence: income first, gains second, and capital last.
However, I am encountering difficulties in calculating my remittance amount due to a specific scenario involving two accounts:
account A is income with interest
account B is capital with interest
Question: if funds are only remitted from account B, in such a scenario, I am unsure about the proper ordering of calculations within this account. Specifically, I would like to confirm whether gains are prioritized over income from Account A, or if the income from Account A is considered first. Moreover, I am seeking clarity on whether the ordering rule is applied on an account-by-account basis or on a per-person basis.
Your assistance in clarifying these aspects would be greatly appreciated. I value your expertise in this matter and believe that your insights will greatly contribute to my accurate completion of the remittance basis application.
Thank you for your time and attention. I look forward to your prompt response.
I have two bank accounts containing a mixed fund. One consists of capital + interest, while the other comprises salary + interest. I am aware that the sequence for applying ordering rules is as follows: income first, gains second, and capital last.
In the event that I transfer money from the capital + interest account, will the salary in the other account be considered in the ordering rules?
I apologize for not being able to locate the answer within the Remittance Basis 2023 (HS264) document.
I have a bank account in HK for clean capital, but I found that this account generate interest, a total of 500HKD. Can we gift this amount to a friend's account to avoid it being considered a mixed fund and restore its status as clean capital?
I have two accounts: account A, which receives income, and account B, which generates interest with capital. If funds are remitted from account B, what will be the order of calculation in this account? Will gains be calculated first, or will the income from account A also be considered first?
My husband and I arrived in the UK from Hong Kong two months ago. He has bank accounts A and B for clean capital and bank account C for his Hong Kong salary, as he is still working remotely, earning 50,000 HKD for two more months. I have bank accounts D and E for clean capital. All the mentioned accounts are based in Hong Kong and in HKD.
1/ We discovered that bank account A earns interest. Does this make all the accounts (A, B, and C) mixed funds? The interest amounts to a total of 500 HKD. Can we gift this amount to a friend's account to avoid it being considered a mixed fund and restore its status as clean capital?
2/ We plan to use the remittance basis for taxation. How will the mixed fund in bank account A affect us in this regard?
3/ My husband then transferred 10,000 HKD from bank account A to my bank account D in HKD, and I subsequently transferred that amount to GBP in my new UK bank account F. Does it count as cash gift? Do we need to pay tax on this transfer? If so, who is responsible for paying it, me or my husband?