HMRC Admin 17 Response
Joined: 1/20/2021
-
RE: Transferring personal money to UK
Hi,
If this is money you had before becoming UK resident for tax purposes then you can bring in
that money without any tax implications.
Thank you. -
RE: Money transfer
Hi
Polly Pang,
You would not need to declare this for capital gains purposes but as a UK resident you will be required to pay income tax on the interest,
even if this money is held abroad.
Further information on foreign currency if held as an asset however can be found here :
Capital Gains Manual .
Thank you. -
RE: Money transfer
Hi
NoelM ,
No there is no income tax implications on this unless there is an agreement where he is paying you back interest as well.
Thank you. -
RE: Transferring personal money to UK
Hi,
For income tax purposes, yes this is all you would need to do.
As advised though, if you have previously not delared this income to us due to the remittance basis then t
his will become taxable when brought into the UK.
Thank you. -
RE: Transferring personal money to UK
Hi,
There would be no income tax implications on this unless you have previously claimed the remittance basis on this income
that you are now bringing into the UK.
If the money generates any interest in a bank however, this would be reportable for tax purposes.
Thank you. -
RE: Cash gift from parents outside UK
Hi,
There are no income tax implications on the transfer of the money but if this generates any interest at all in a bank account
then this would be reportable for income tax purposes.
Thank you. -
RE: UK Tax on Australian Superannuation
Hi,
If you are unsure whether your payments are classed as lump sums or not and the guidance provided here does not clarify then you would need to send in the paperwork to ourselves so we could review this further.
The term lump sum is not legally defined and so we can only interpret the meaning and following discussions with the Tax Treaty Team, we have adapted our understanding:
A lump sum should be a payment that is not a periodic payment.
This may not empty the pot, and a taxpayer may have more than one lump sum payment.
Example – If a taxpayer receives monthly pension payments and then takes out a larger payment as a one off from the same pension pot, whilst continuing with regular monthly pension payments, then this one-off larger payment can be considered a lump sum as it is not a regular periodic payment.
However, if a taxpayer has a pension fund which only requires an annual distribution of a certain percentage (eg 4% payment annually)to be made, then even though this is only once a year, it should be considered a pension as it is their periodic pension.
If the payment is a periodic payment, then this would only be taxable in the UK. The 25% rule applies to UK pensions.
Thank you. -
Mortgage interest - tax relief?
Hi,
This will be taken as a basic rate tax deduction from your tax liability for the property.
You calculation will work out the tax based on your net profit.
If there is any tax due it will then use 20% of the amount in the finance costs box and reduce the tax liability by this amount.
There will be separate line towards the end of the calculation to show this.
Thank you. -
Mortgage interest - tax relief?
Hi,
Thank you for your question.
You should put the ineterest paid on your mortgage under "Residentail finace costs".
Thank you.
-
RE: UK Tax on Australian Superannuation
Hi
Tony Simpson,
We are unable to provide financial planning advice or give advice on hypothetical situations.
However, as a UK tax resident you would be expected to report your worldwide income to the UK, including pensions
unless there is a specific clause in the tax treaty to state otherwise.
Australian pensions are generably taxable in the UK.
See Link:
UK/ AUSTRALIA DOUBLE TAXATION CONVENTION .
This is not dependant on whether the money is brought to the UK.
Thank you.