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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4357
Experience:  FCCA FCMA CGMA ACIS
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I recently got a letter from the HMRC asking me to account

Resolved Question:

Hi- I recently got a letter from the HMRC asking me to account for my foreign holdings, and I'd like to ask how I'm supposed to answer it. I have stocks in an account in Sweden, but I believed that as long as my yearly earnings were less than 2k pounds I did not need to do anything?
Submitted: 1 month ago.
Category: Tax
Expert:  bigduckontax replied 1 month ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Two questions, are you an UK resident ans does this letter require details of income or holdings or both?

Customer: replied 1 month ago.
I am a UK resident, but I'm not living permanently in the UK, just working here, for the past 5 years. I make 85k here. The letter is "Take action now to bring your tax affairs up to date", asking me to fill in a Certificate of Tax Position (CFSS-2556032). I have about 10k in international stocks in a Swedish account that I have not touched since moving here.
Expert:  bigduckontax replied 1 month ago.

You are liable for UK taxation on your world wide income. If you declared any Swedish income from shareholdings on your self assessment return then you should reply to HMRC to this effect. If you did not then you should tell that Department about your overseas income and any tax deducted. Under the Double Taxation Convention between the UK and Sweden any tax deducted by the Swedish authorities is allowable as a tax credit against any UK liablilty on the same income stream. The Convention does not, however, protect you from differences in rates of taxation.

I do hope that you have found my reply of assistance.

Customer: replied 1 month ago.
But what about domiciling? According to the HMRC website, if I am domiciled elsewhere, and have less than 2k per year income internationally, I don't need to do anything.
Expert:  bigduckontax replied 1 month ago.

What is your nationality and where are you domiciled?

Customer: replied 1 month ago.
I'm Swedish, my father's nationality is Swedish, and he was born in Germany. My parents own houses in Denmark and Sweden. I presently rent. I have not done self-assessment over the past 5 years. I would consider myself domiciled outside the UK.
Customer: replied 1 month ago.
E.g I have used the automatic tax deduction
Expert:  bigduckontax replied 1 month ago.

Well it takes at least 16 years to obtian an UK domicile so it can be taken that you are not domiciled here. Therefore under the current rules, as your foreign income is beöow 2K and not remitted to the UK, there is no requirement to disclose it on your self assessment tax return if you make any. You should advise HMRC of this fact ans politely tell them to mind their own business.

I do hope that you have found my reply of assistance.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 month ago.

Tnank you for your support.