Lan A
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UK resident, foreign sole trader. Question about double taxation
Hi, I am a UK resident, non-domicile. I will probably receive income as a sole trader in another country, and will pay taxes there. The tax rate in that country is lower than in Scotland, where I live. The country and the UK have a double taxation agreement. I wish to transfer a part of this income from my foreign business bank account to my British account for personal use. So, I want to understand how this will work tax-wise. Is the following correct? 1. I will need to pay tax in Scotland on a remittance basis. 2. In Self-Assessment, I can ask for a tax return. And I will get back the amount of tax paid in a foreign country for the income transferred to the UK. Thank you!