Simon

On a general basis, does HMRC review tax treaties before sending out letters enquiring about foreign income or are letters simply sent out on a blanket basis?

I received a nudge letter from the HMRC on Foreign Income. I called up the HMRC and they informed me that it was in relation to payments from Hong Kong which were not disclosed on my self-assessment - they informed me of the payer details. I identified these monies to be from my Hong Kong Pension Trustee, a pension which I cashed in before I permanently left Hong Kong to take up a role in UK. However, I am aware of the Double Tax Treaty between Hong Kong and UK, article 17, which states clearly that Hong Kong Pensions are not taxable in the UK. Why would HMRC send a nudge letter without first understanding the source of the income and the Double Tax Treaty?

I made payment to the HMRC via the online HMRC payment tool Ecospend - the 'balance section' on my account states the payments were made and my bank has confirmed the payments went out. I made the payments on 13th November and they have yet to be applied. Given these were revisions to an existing tax assessment, I am still accruing interests on a daily basis because HMRC has not applied he funds despite payments being made. This is wrong - when will HMRC apply the funds and correct the over accrue of interest?

Can anyone confirm: I understand, that through the double tax treaty between UK and Hong Kong, personal pensions paid out from Hong Kong to a UK resident, is not taxed in the UK? If so, do they even need to be input on the self-assessment form given there is no liability. Any guidance would be appreciated.