Skip to main content

This is a new service – your feedback will help us to improve it.

  • RE: Foreign income on remittance basis

    Hi HMRC Admin 26, Thank you very much for the confirmation. Yes, he need to pay tax in UK on any interest generated from the money he made before 6 April 2021. Regards
  • RE: Foreign income on remittance basis

    Hi, It has nothing to do with the split year. The money he remitted to UK is the money he made before 6 April 2021, when he was not a UK resident. He does not need to pay tax for the money he made in China when he was not a UK resident. Is it correct? BTW, The tax year ended on 5 April 2022 starts from 6 April 2021. Thanks
  • Foreign income on remittance basis

    Hi, A friend of mine asked me to ask two questions here. He has been working in UK since June 2021, so he is a UK resident for the tax year 6 April 2021 to 5 April 2022. He was not a UK resident before 6 April 2021, He was working in China and has never been to UK before June 2021. He is preparing his tax return for the tax year ended on 5 April 2022 on remittance basis. He has foreign income in China during the tax year 6 April 2021 to 5 April 2022, which is the reason that he would like to file his tax return on remittance basis. He has two bank accounts, one account is used to hold the money he made in China before 6 April 2021, the other account is used to hold the money he made in China since 6 April 2021. He remitted 25000 pounds in October 2021 to UK from China from the account holding the money he made before 6 April 2021. Does he need to pay tax in UK on the 25000 pounds he remitted for the tax year 6 April 2021 to 5 April 2022? Does he need to put the money he remitted on the tax return for the tax year 6 April 2021 to 5 April 2022? Thanks and regards Jiwen
  • RE: Deduction relief and remittance basis

    Hi, Thank you for the reply. Could you please answer the question with yes or no according to my case? Please let me know if you need more information about it. Thanks
  • Deduction relief and remittance basis

    Hi, I am preparing my tax return for the tax year ended 5 April 2022 on remittance basis. I received a dividend of 10000 pounds in the tax year . It was taxed in China at the rate of 20% (I paid the tax of 2000 pounds in China). I remitted the after-tax dividend of 8000 pounds to UK. According to the DTA between UK and China. I can only claim the foreign tax credit relief of 10% of the dividend (I can only claim FTCR of 1000 pounds). I found at https://www.gov.uk/hmrc-internal-manuals/international-manual/intm161050 the following description: “If, for any reason, tax credit relief is not claimed, the foreign tax paid must be deducted from the income from the foreign source in computing the amount of the income for UK tax purposes (TIOPA10/S112-115).” It seems I can get all the tax paid in China (2000 pounds) to be deducted from the dividend in computing the amount of the dividend for UK tax purposes if I claim deduction relief, which means I only need to pay tax in UK for the dividend of 8000 pounds. Could you tell me if my understanding is correct? Thanks