HMRC Admin 19 Response

Hi,

Please note that all UK residents are required to complete a Self Assessment tax return if they receive foreign income, so please complete a 2022 return and include in the foreign pages details of your HK pension (Article 17 of the UK/Hong Kong Double Taxation treaty notwithstanding).

Please note that you would not however have to include details of the salary you received while you were still resident in HK.

Details of how to register for Self Assessment are provided below.                                                                    

Register for Self Assessment

Thank you.

Hi,

If you have savings income from another country you are required to declare this as foreign income on a Self Assessment tax return form.  

If you have already been taxed on the savings income abroad, you can claim Foreign Tax Credit Relief to avoid double taxation.

If you transfer this money to your wife she is not liable for tax (as you have already declared this) on the income unless it attracts her own interest on the funds.  

Thank you.

Hi Oguzhan Aydore,

If this is just a transfer of savings and the income itself has not been left in Turkey as the remittance basis has been claimed on it then there will be no Income Tax implications here unless the money generates some interest in the bank account at which point, the interest will be subject to IncomeTax. 

Thank you.

Hi Sha Sha,

There are no Income Tax implications on the gifting of money or basic transfer of money unless the money generates income in a bank account. The interest would then need to be reported for income tax purposes.

If however, you are already UK resident and have claimed the remittance basis on this money then it would need to be declared once brought into the UK. 

Thank you.

Hi steve888richards,

There are no Income Tax implications on the transfer of money to the UK if this is capital from savings.

If the money generates any interest, however, and you are a UK resident, then this would need to be reported for Income Tax purposes.

You may wish to speak to your UK bank if you have one about the transfer. 

Thank you.

Hi,

If you qualify for split year then you only need to declare income for the UK part of the year.

You can see the following guidance on the completion of the SA109 with regards to this:

Residence, remittance basis etc (Self Assessment SA109)

Boxes 18-22 would only apply if you are claiming tax relief in the UK under a double taxation agreement. 

Thank you.

Hi,

As a UK resident, any foreign income earned while a UK resident generally needs to be reported to the UK unlss you are non domicile. In theses cases you can defer reporting the income until it is brought into the UK.

Gifts of money would not need to be reported for tax purposes. Any interest gained on the amount would however have been subject to UK tax. 

Thank you.

Hi,

As a UK resident all income from abroad is subject to UK tax unless there is a specific clause in the tax treaty to exempt this.

Please see the Australia tax treaty here:

UK/ AUSTRALIA DOUBLE TAXATION CONVENTION

DT2650PP - Double Taxation Relief Manual: Guidance by country: Australia: Contents

Thank you.

Hi smorrison,

There are no Income Tax implications on the transfer of money. 

Thank you.

Hi,

Financial planning is looking at ways to reduce your tax liability which HMRC does not get involved in.

HMRC may tax a UK resident's world wide income.

As mentioned previously if you take your Australian pension then under article 17 of the double taxation agreement the UK can tax this. If the pension you take is classed as a Trivial Commutation Lump Sum then Australia have the right to tax it and it will not be taxed in the UK.

Thank you.