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Posted Thu, 13 Jan 2022 20:08:23 GMT by Keung C
I have question about income tax. I have saving account in Isle of man, and already deposited money (only capital) into this account before I become UK resident. And earned some interest when I am UK resident. Is it clarify as mixed fund? Do I need to cleanse the mixed fund if my bank account statement which can identify “interest” and “capital” part? If I transfer/bring money (included capital and earned interest) from Isle of man saving account to UK bank account after I become UK resident (i.e stay over 183 days). Is it only pay tax on earned interest? And no need to pay tax in my capital part? Do I need to register for self-assessment to declare “interest” part if I earn interest from my oversea saving account? Thanks for advise.
Posted Mon, 17 Jan 2022 12:54:11 GMT by HMRC Admin 18
Hi,

There is no income tax due on any capital from a savings account. It is only the interest that is potentially subject to income tax. If this interest arises from overseas then you will need to register for self assessment to report this. See link below:

Self Assessment tax returns

Thank you.

 
Posted Mon, 17 Jan 2022 15:56:18 GMT by Keung C
Thank you for your reply. and just follow up. Do I also need to declare "capital" in self assessment? Thanks for advise again.
Posted Tue, 18 Jan 2022 11:15:20 GMT by HMRC Admin 17

Hi,
 
No you do not need to declare the capital.

Thank you.
Posted Wed, 19 Jan 2022 13:54:04 GMT by Keung C
Thank you again for your information. Is it only declare "interest" and do not need to declare "capital" in tax return on 5 April 2022 even I transfer all money (including interest and capital) from IOM account into UK bank account in tax year 2021-2022? Thanks a lot.
Posted Wed, 19 Jan 2022 15:44:34 GMT by HMRC Admin 17

Hi,
 
Yes this is correct. It is only the interest that is taxable. 
  
Thank you.
Posted Thu, 20 Jan 2022 10:02:14 GMT by Keung C
Hi, Many thanks for your reply. And sorry that I just confirm on it. In my understanding, I only declare and pay tax on "interest", no need to declare and no need to pay tax on "capital" in coming tax return (5 April 2022) even I bring/transfer all money (mixed fund including interest and capital) from IOM bank into UK bank this tax year 2021-2022? Am I correct? Thanks again for great help.
Posted Fri, 21 Jan 2022 12:00:01 GMT by HMRC Admin 10
Hi

Yes this is correct. 

Thankyou.

Regards.

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