Banking Interest for Non-UK Tax Resident

Hi HMRC, I am currently living in Hong Kong and never been to UK. I am planning to move to UK in about 2026 and I have just opened a bank saving account in UK. To better prepare for my migration, I plan to transfer some of my money to UK now. I would like to know whether I need to pay for personal income tax (or any other tax) for the interest arise from my saving for year 2023-2024 and 2024-2025. Many thank.

Hi,

You would only be taxable on foreign income and gain from the tax year in which you arrive in the UK. Any income or gains arising before that are not taxable in the UK, so there would be no tax implications to transferring these funds.

Thank you.

Hi HMRC, I have similar situation with Ed Leung. Would you please clarify my question as below? 1. Before I arrived in the UK, I was a non-UK resident. I earned some interest income from UK bank. Do I need to report these interest income arising in the UK? 2. I found some information in the HMRC website. All of these stated that non residents have to pay tax on UK income. 2.1 (https://www.gov.uk/tax-foreign-income/residence) Non-residents only pay tax on their UK income - they do not pay UK tax on their foreign income. 2.2 (https://www.gov.uk/tax-uk-income-live-abroad) You usually have to pay tax on your UK income even if you’re not a UK resident. Income includes things like: -pension -rental income -savings interest -wages Does the non Resident need to report these income arising in the UK? Thanks.

Hi, HRMC Kindly let me (I am a non-UK resident ) know how to report the income (any interest earned from the Bank in UK) to you and how to pay the Tax on the said interest. Thanks

Hi Raymond_33,

If you are not resident in the UK, but have UK savings and investments (such as interest or alternative finance receipts from banks or building societies, unit trusts, National Savings and Investments, or dividends from UK companies), the income is taxable in the UK.  
HS300 provides information on how this is done and includes a working sheet to assist in calculating the tax.  
Non-residents savings and investment income (Self Assessment helpsheet HS300)
If you are not resident in the UK, then you are not taxable in the UK, on your non UK income or gains.
If there is a double taxation agreement between your country of residence and the UK, then you may find that salaries, wages and other remunerations, as well as pensions including state pension arising in the UK, are not taxable in the UK, but are taxable in your country of residence.  In all double taxation agreements the UK has with other countries, income and gains arising from property in the UK, are taxable in the UK.  A tax return must be completed every year.

Thank you.
 

Hi Chong Kenneth,

You can see guidance here:

Tax on your UK income if you live abroad

Thank you.

Hi, HMRC Actually, I am a Hong Kong Citizen (and is a non-UK resident) and wish to open a Bank Saving Account in UK. I want to know that whether I need to pay any tax on (i) the welcome bonus upon account opening; and (ii) any interest to be earned from the said Bank Saving Account. Thank you

Hi, HMRC Further, what are the penalties for failing to report the said welcome bonus and/or interest income to UK Government? Thank you for your kind attention to this matter.

Hi
You would not be taxable on the bonus payment for opening the account.  
Any interest arising from capital in the account will be taxable as 'disregarded income'.  
The amount of tax is limited to the amount of tax, if any, deducted at source.

Hi,

You can see information here:                           

Compliance checks for penalties of inaccuracies in returns or documents

Thank you.

Hi HMRC admin, was a non-UK resident. I earned some interest income from UK bank. The Bank Interest income is my only UK income. May I confirm that if this interest income is treated as ‘Disregarded income’ as a non UK tax resident and no tax is due on it? Do I need to report these interest income arising in the UK? Thanks

Hi,

No, you dont need to report it.

Thank you.

Hi HMRC admin, I have a friend who is moving to the UK and has already applied for a NIN, and a bank account and will soon be registered to an address, but will keep their tax residence in their native country for a few months until the transition into the UK is fully settled. - Does this pose an issue with the opening of a bank account (like Lloyds or Monzo)? - Can she open a savings account and collect interest? - Does she have to always pay tax on her interest? Is there a threshold based on her salary?

Hi Duarte Mendonca

HMRC cannot comment on future events as legislation and/or plans may change. The opening of the bank account and any issues is for your friend to discuss with the relevant bank.

Thank you

Hello HMRC, I've just moved to Thailand. I have a bond in the bank that'll mature in September.Not being a UK resident anymore.Will I have to pay tax on my money.It's for when I have to transfer it to Thailand. if so, will it be covered by double taxation,and I won't have to pay tax in Thailand again?I'm very concerned

Hi,

You can see guidance here:

Tax on your UK income if you live abroad

Thank you.

Hi HMRC, I have question re bank interest as a non resident UK citizen. My situation is that am living and resident in Spain. I submit an annual spanish tax declaration for my UK State pension and interest from UK savings cash ISA and premium bond winnings which are not tax free in Spain. I am also in receipt of Crown Pension which are taxed by HMRC (PAYE) as well as tax on a property which is rented out in the uk, I submit an annual tax return to HMRC re this and have also submitted a double taxation agreement form which has been actioned. My question relates to a savings bond I recently took out through Ns&i which is for a 3 year term. From the Ns&i site it says that this should be declared for tax on completion of the 3 year term. Who should I declare this to for tax, HMRC or Spanish tax authorities? I was of the belief it should be spanish tax authorities but I have read conflicting information.

Hi,

It should still be shown on your tax return as it is UK income. As a non resident, it will be treated as disregarded income but you need to ensure the residence page SA109 is completed on your tax return. You can see guidance here:

Tax on your UK income if you live abroad

Thank 

I am tax resident in Italy. I have received interest on a National Savings and Investment Savins account and a Savings account with Skipton International (a UK Building Society that is based in Guernsay). This interest will be entered into my Italian Tax return. Do I also enter onto my UK self-assesment form (my only other income taxable in the UK is rental on a UK property). Thank you for your kind assistance.

Hi
If the actual account is in Guernsey this is not UK income and doesnt need to be declared.