AB2121

Hello HMRC, Trying to understand ftcr for Indian CG earned between end on Indian FY ie 31st March & UK FY 5th April. This is the 1st time it has happened, but there is some capital gains booked on the 4th April. For Indian tax purpose, these will be charged in next year's return, but for my UK tax they will need to be reported this year. Now I'm struggling to understand how to claim FTCR on this. I don't think I can claim any this year - as no tax paid in India. When I pay tax in India next year - I will not have this CG to offset it against the ftcr! so in essence it seems I will pay tax twice on this CG? that cant be correct, I'm certain I'm missing something. Please help me.

Hello HMRC, Trying to understand ftcr for foreign income earned between end on Indian FY ie 31st March & UK FY 5th April. This is the 1st time it has happened, but my bank account, paid interest on 2nd April instead of the usual 31st March & there is some capital gains booked on the 4th April. For Indian tax purpose, these will be charged in next year's return, but for my UK tax they will need to be reported this year. Now I'm struggling to understand how to claim FTCR on this. I don't think I can claim any this year - as no tax paid in India. When I pay tax in India next year - I will not have this income to offset it against the ftcr! so in essence it seems I will pay tax twice on these transactions? that cant be correct, I'm certain I'm missing something. Please help me.

Hello HMRC, I am a UK national and a consultant living in England providing design services through my own Ltd company (company registered in UK since 2011, vat registered, 1 person company, I’m the director). I have been offered a fully remote outside IR35 contract that will be executed by me via my company, beginning April 2024. I was thinking of using the digital nomad visas offered by tax free countries esp. Dubai, for maybe upto 2 FY. If I were to move to Dubai, I would have no ties with the UK except for my company. I wanted to understand the following: 1. Based on SRT tests, i will be non resident, as i will have no ties other than my company. I dont envisage working 30 days in the UK either. However, all the work I will be doing from Dubai, will be for my UK company, which in turn is working for a UK client. But as physically I'm not in the UK I don't have enough ties. Is this correct? Does my being the company director change anything wrt SRT, like number of days for UK ties? 2. If I’m classed as non-resident, will the dividends/ salary drawn by me from my company be taxable in UK? If no, then do I need to declare them on my self-assessment?

Hello HMRC, I wanted to understand whether I can subscribe to ISA, LISA in a year where split treatment case-1 is applicable to me.

Hello HMRC, I had made some EIS investments 1 year back when I was in the UK & had also deferred capital gains against them. I still hold the EIS investments but am currently abroad. I will be nonresident for 2-3 years. I understand that my EIS investments income tax relief claimed, CG on disposal are independent of residence, but deferred capital gain is not available to non-residents. I needed to understand whether I need to / when I should apply for the deferred CG to be revived. Reading HS297 Reporting revived capital gains section, I understand the following: 1. If I move abroad 3 years after the EIS shares were issued, the deferred capital gains will not be revived. HMRC, please confirm if this is correct? 2. If I become non-resident at anytime (can be within 3 years of EIS issue date) but become resident again within 3 years, the deferred capital gain will not be revived. HMRC, please confirm if this is correct? If yes, then 3 years of non-residency are not 3 financial years but 3 years from date of EIS share issue? Eg: EIS share issued on 6/7/2022, leave UK on 1/1/2024 come back on 31/12/2026. So out of UK for 3 years, But dont need to report deferred CG to be revived? Further, HS297 states that become non-resident to take up employment abroad, do other reasons for becoming nonresident not qualify? Thanks

Understood. Thank You so much

Hello HMRC, I wanted some clarity on capital gains deferral in EIS. Essentially can I defer only the FY gains & carry forward the FY loss or is it the net FY gain that can be differed? For clarity, say I have 14k gains, 2k loss, EIS investment of 8k. Can I defer 8k capital gain, use 6k allowance & then carry forward 2k loss in my self-assessment? Or as the net FY gain for the year is 12k, allowing for 6k tax free allowance, I can only defer remaining 6k in EIS investments?

Hello HMRC, I am a UK national and a consultant living in England providing design services through my own Ltd company (company registered in UK since 2011, vat registered, 1 person company, I’m the director). I have been offered a fully remote outside IR35 contract that will be executed by me via my company, beginning April 2024. I was thinking of using the digital nomad visas offered by tax free countries esp. Dubai, for maybe upto 2 FY. If I were to move to Dubai, I would have no ties with the UK except for my company. I wanted to understand the following: 1. Will I be non-resident in UK for purpose of taxation, given that I will have no family/home ties with UK, be in UK for less than 30 days; however, all the work I will be doing from Dubai (min 40 hrs/week), will be for my UK company, which in turn is working for a UK client. Does my being the company director change anything, like number of days for UK ties? What is the number of days allowed in UK to be non-resident, as a company director? Is it still 16 days for automatic ties test or reduces to 0? What do I have to do be non-resident as a company director of a UK company working for my company? 2. If I’m classed as non-resident, will the dividends/ salary drawn by me from my company be taxable in UK? If no, then do I need to declare them on my self-assessment? 3. What happens to NI? Employers NI has to be paid by my company? 4. So far I have understood that upon leaving I will need to complete a P85 form and upon becoming a resident of Dubai apply for a NT tax code. Is that correct? Anything else I need to do? 5. I have a flat that I will rent out, rental income will be filed in my self-assessment & taxed in UK. My company will pay corporation tax, vat as usual. Correct? 6. Income from stocks (companies in USA, EU, UK etc) held in my UK demat account: dividends/Capital gains as well as any UK interest income will also not be taxable in UK? If no, then do I need to declare them on my self-assessment? 7. I have accounts in India (I'm born in India & I think domiciled in India), Income from stocks (companies in India) held in my India demat account: dividends/Capital gains as well as any interest income earned in India will also not be taxable in UK? If no, then do I need to declare them on my self-assessment? 8. Does anything change if I’m back in 2 FY? HMRC website, talks about temporary non-residents, if back in less than 5 FY. Would that mean that tax on salary/dividends from my UK company would have to be paid before returning? What about other income heads: stocks in UK demat account? I assume that foreign income i.e. earned in India would still be exempt? I have tried to get information from two accountants but have received conflicting advice. According to my accountant, I will be non-resident & hence except rental income in UK, everything else is outside UK tax. However, a colleague in similar position has been advised by his accountant, that the salary/dividend from my UK company would be taxable in UK, as the work is done through a UK company & as I’m the director of the company, even one day in the UK puts me in UK tax range, he wasn’t sure what happens if 0 days are spent in UK! I would be very grateful, if HMRC could provide an answer to this, as I’m sure there must be many in my situation & there is confusing / conflicting advice available.

Hello HMRC, I had made some EIS investments 1 year back when I was in the UK & had also deferred capital gains against them. I will be moving abroad for work for maybe 1-2 years, should I return the deferred capital gain benefit to HMRC now? Or wait until the companies cash out my stocks?