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Posted Sat, 02 Mar 2024 19:02:27 GMT by nomadic_user
UK Resident non- domiciled ,Self Assesment done on Arisal Basis Interest earned in FY21-22 more than 2K in NRE savings not remitted - Tax payed in UK on Arisal Basis It seems I shouldnt have paid tax here as per "HMRC Admin 32" reply as below . Also find the url to the reply below HMRC Admin 32 -"If you are resident, but not domiciled in the UK at in the year the interest arises, and you do not remit the interest to the UK, then it is not taxable. It will, however, be taxable in the year in which you do remit the interest to the UK" So does that mean , I should have not payed this as tax ? Also if I remmited this FY21-22's 2K interest in FY 22-23 , would I have had to pay tax here in UK in FY 22-23 on it or since it wasnt earned in FY 22-23 and was from previous year I didnt have to pay tax even if I remmited ? https://community.hmrc.gov.uk/customerforums/pt/e2005350-a3d9-ec11-bea1-00155d9c9666?msCorrelationId=0c52f54f-249d-473d-97ef-981aa4cf9afc&instanceId=01f4517443e207d8a0cfa3d67fda42f1303011901e87b60eb5ba6ee1a20c9aca&tenantId=ac52f73c-fd1a-4a9a-8e7a-4a248f3139e1&portalId=e1cfc2ea-2de6-4c96-8e99-76600a349358&orgId=13212d7e-6a5d-4598-95ba-4a07545dbb67&environmentId=302efd07-28d9-4d2d-b558-96167951ad6a&portalApp=site-e1cfc2ea-2de6-4c96-8e99-76600a349358-UKw&portalType=Community%20Forums&portalProductionOrTrialType=Production&licenseType=Dynamics365&portalVersion=9.5.10.31&islandId=101&portalDomain=https%3A%2F%2Fcommunity-origin.hmrc.gov.uk&page=2#:~:text=If%20you%20are%20resident%2C%20but%20not%20domiciled%20in%20the%20UK%20at%20in%20the%20year%20the%20interest%20arises%2C%20and%20you%20do%20not%20remit%20the%20interest%20to%20the%20UK%2C%20then%20it%20is%20not%20taxable.%20It%20will%2C%20however%2C%20be%20taxable%20in%20the%20year%20in%20which%20you%20do%20remit%20the%20interest%20to%20the%20UK.
Posted Tue, 05 Mar 2024 12:59:33 GMT by HMRC Admin 32 Response
Hi,

Where you are UK resident and non domiciled, you are by default taxed using the arising basis, however, you can choose to use the remittance basis instead.  

If you use the remittance basis, you lose your personal allowance and become taxable on your UK income and capital gains plus any remitted income and capital gains.  

You declare the unremitted income and capital gains on the tax return, including a freehand note detailing the unremitted income and gains. 

If you bring the unremitted income / gains into the UK in a future tax year, it will be taxable in that future tax year.  

Have a look at section 9 on the remittance basis, as it is not always the best option for everyone and may increase your tax payble.

Thank you.

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