tax liability in the UK when earning interest from a UK bank as a non-resident

Hello, I am a non-resident in the UK (I live in Sweden), but have a UK bank account where I earn interest on my savings (I have an ISA savings account as well as flex saver account in my UK bank). I am wondering if I need to fill in a self-assessment and pay taxes in the UK because of this? I found the following on the HMRC websites. "With the exception of income from property in the UK and investment income connected to a trade in the UK through a permanent establishment, the tax charge for non-residents on investment income arising in the UK is restricted to the amount of tax, if any, deducted at source. If the tax charge is limited in this way, personal allowances will not be given against other income." Do I understand correctly that unless my bank already takes part of my interest away before it is paid to me ("tax deducted at source"), then there is NO liability for me to complete a self-assessment return and pay taxes? The last sentence of the quote is also giving me trouble - "If the tax charge is limited in this way, personal allowances will not be given against other income." Does that mean, if my bank does NOT deduct tax at source, then I still do not need to submit a self-assessment or pay tax in the UK, but I no longer have a personal allowance amount in the UK - meaning if there is ANY amount of other income that is considered "UK income", I will have to report regardless of amount? Thanks for the clarification.

Hi 

Please refer to to the guidance here  Tax on your UK income if you live abroad

Thank you

Hello, On the link that you provided, it states the following: "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" Since savings interest is specifically mentioned there it sounds like, even if you are NOT a resident, you have to send a self assessment tax return if you have a UK bank account that generates interest? But it somewhat contradicts the guidance that I found on the gov.uk website about "non-residents and investment income" (see my first post, the link for this is https://www.gov.uk/government/publications/non-residents-and-investment-income-hs300-self-assessment-helpsheet/hs300-non-residents-and-investment-income-2023). Could you please clarify? Thanks.

Hi
If you have interest from savings and investment income (excluding dividends), Chargeable Event and/or PPI interest of more than £10000, then yes, you need to complete a tax return.

Thanks for your response. No, my interest from my savings on my UK bank does not exceed £10000 (and I don't have any Chargeable Event or PPI interest). So in that case, I don't need to complete a tax return in the UK?

Hi,

Please use the tool below, to confirm whether a tax return is required, in case something you may not have mentioned, confirms a return is required.

Check if you need to send a Self Assessment tax return

Thank you.

The link that you sent me to the tool (to check if a self-assessment is required) is for UK residents. As I mentioned, I am a UK non-resident. Could you confirm that, as a UK non-resident, and my ONLY UK income coming from my interest from my UK savings account (less than £10000, as mentioned by HMRC Admin 10), I do NOT need to fill out a self assessmen? Thank you.

I also have a question about a non uk resident earning interest on a uk savings account. Up to what amount are they allowed to receive before paying tax, how is this calculated. If necessary how do they pay the tax Many thanks

Hi Corinna,

Please refer to:

Tax on your UK income if you live abroad

Thank you.

Hi Stanny77 Russell,
Please have a look at the non residents savings and investment income helpsheet HS300 (Non-residents savings and investment income (Self Assessment helpsheet HS300)).  
This will let you work out your taxable income from UK savings and investments if you’re not resident in the UK.  
Further information can be found at SAIM1170 - Savings and investment income: non-residents.
Thank you.

You are referring me to https://www.gov.uk/tax-uk-income-live-abroad. I already mentioned in my first two posts that the information in this post contradicts the information found on the "non-residents and investment income" page. This is the reason why I started the thread. Any clarification on that possible?

Hi,

Yes, your understanding of the position, as stated in your original post, is correct and you are not required to complete a Self Assessment tax return. We apologise for any confusion caused by previous responses. You can see guidance here:                                                   

HS300 Non-residents and investment income (2020)

Thank you.

Thank you! I do appreciate your clarification on this.

Hi HMRC Admin I'm in a similar situation as Corinna Lenz however I'm based in Hong Kong and a UK non residence. I have less than £10,000 interest from savings from the UK bank (Not from ISA and I don't have any Chargeable Event or PPI interest) and I no other income from the UK. Can you confirm if there is no need to submit a self assessment for tax year 2023-2024 if the bank interest on saving is less than £10,000 ? Also just wanted to highlight: I had a look at "HS300 Non-residents and investment income (2020)" and "helpsheet HS300 (Non-residents savings and investment income (Self Assessment helpsheet HS300))" this doesn't confirm the amount before needing to submit a self assessment hence wanting to confirm incase there is a change in TAX requirement. And https://www.gov.uk/apply-tax-free-interest-on-savings Assuming its for UK residence, this is very confusing as it mentions needing to submit a self assessments for anything over £1,000 of bank interest on saving but on the other hand it also mentions only needing to submit a self assessment if it's over £10,000 ? - 'You may also get up to £1,000 of interest and not have to pay tax on it, depending on which Income Tax band you’re in. This is your Personal Savings Allowance.' - 'You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.'

Hi,
You can see guidance here:
Tax on your UK income if you live abroad
Thank you.